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| ASSOCHAM calls for raising import duty on steel products - 27 Jan, 2012 | ||
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Indian industry body ASSOCHAM called for raising import duty on steel products from the prevailing 5% to a minimum of 10% so that domestic manufacturers can withstand growing imports from China and CIS countries. The challenging global environment is bringing fierce competitive pressures on performance and price reduction. ASSOCHAM secretary general Mr DS Rawat said that -The oversupply in international markets is forcing China and the Commonwealth of Independent States to dump their steel products like hot rolled coils, cold rolled coils and other coated products into growing markets like India.- He said that as a result, the Indian steel industry has reduced production and is running at lower capacity utilization. Mr Rawat said that -Most importing nations protect their domestic producers by imposition of a marginally higher import duty while encouraging exports by offering various incentives. China, for example, provides export incentives of nine per cent on steel products.- Raising import duty to a minimum of 10% will encourage the growth of domestic steel industry and ensure that India growth story is kept intact, he said in pre Budget memorandum to the ministries of finance and steel. China and CIS countries posses huge coking coal and iron ore resources which give them cost competitiveness while India depends on imports for its requirements. Nearly 50% of the steel manufacturing cost is on account of coking coal and 20% on iron ore. In the next two years, steel making capacity is set to expand by 15 to 20 million tonnes for meeting growth in demand of high end consumer products like cars, refrigerators and washing machines.  | ||
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