India Jindal: Has urged the government to restore import tariffs on stainless steel from China and Indonesia
According to an Indian media report on January 2, at the time when the 2022 budget was only one month away, Jindal of India had urged the Indian government to restore import tariffs on stainless steel from China and Indonesia in order to protect the domestic stainless steel industry in India.
Abhyuday Jindal, managing director of India Jindal, said in an interview that India is the only country that is open to stainless steel dumping.
He said that in the absence of a level playing field for domestic stainless steel producers in India, the government needs to protect the industry.
“India is the only country that is open to stainless steel dumping. Earlier it imposed (import) tariffs on China and Indonesia. In the last budget, they were immediately cancelled. In the past few months, imports from China have been immediately An increase of 185%. Therefore, if India continues to remain open to imports, companies from China and Indonesia will benefit. Not only Jindal Stainless, but other stainless steel manufacturers will naturally die.”
Abhyuday Jindal said.
After the surge in primary steel hurts downstream companies, especially small and medium-sized enterprises, the Minister of Finance Nirmala Sitharaman (Nirmala Sitharaman) in the last budget put non-alloy, alloy and stainless steel semi-finished products, flat products and long products. The tariff on the country was uniformly reduced to 7.5%.
The budget also abolished the countervailing duty (CVD) imposed on the import of stainless steel plates originating in or exported from Indonesia. It also lifted import tariffs on certain hot-rolled and cold-rolled stainless steel flat products originating in or exported from China.
However, a year later, steel prices remained high and squeezed secondary producers. The M**E department has repeatedly complained that high input costs have eroded their profits and made survival difficult.
Abhyuday Jindal attributed the increase in steel prices to international trends and sharp increases in input costs, while stating that the industry needs a level playing field to compete with competitors from China and Indonesia.
He called for investment in the logistics industry to make the stainless steel industry competitive among its global counterparts and to take measures to reduce borrowing costs.
“When we talk about a level playing field, India’s logistics costs are much higher than other countries. Logistics is an area where the government needs a lot of investment, but infrastructure construction takes time. Therefore, before infrastructure support comes, we need responsibility support. That kind of interest rate, the long-term loans that banks provide to companies in their countries, we don’t see this kind of support here. We sometimes have to go to NBFC, we have to go to foreign banks, but in other countries, we see full expansion And growth are supported by local banks.”
Abhyuday Jindal explained in detail.
“The banking channel level is necessary. Electricity in India is very expensive. If I compare from Odisha to Gujarat to Haryana, there are many different costs…Our country’s tariff structure is not very clear. In GST, you have reversed the responsibility structure.”
Abhyuday Jindal added.
