Around 62 percent of steel imports into India originate from free trade agreement (FTA) countries at zero duty and any duty hike will not have any impact on these shipments, secretary of India's ministry of steel, Sandeep Poundrik, said in a statement on Thursday, November 21.
The secretary made his comments against the backdrop of domestic steel producers' concerns over rising imports of steel into the country and their requests for higher tariffs to check such imports.
Mr. Poundrik said that there is a genuine problem and that the ministry is aware of this, but there are multiple ways to protect the domestic industry though the only problem is that 62 percent are imported at zero rate of duty from free trade agreement (FTA) countries.
"So, if we increase basic customs duty, there is no impact on this 62 percent of imports because there is no duty," he said.
India's steel imports in the first half of this financial year increased by around 41 percent and exports declined by 36 percent, year on year.
The inventory levels of steel companies have increased from the normal 15-16 days to up to 30 days, he said.
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