Business
Indian stainless steel sector drowning in Chinese imports
The first half of 2021-22 has seen a 185 per cent increase in stainless steel imports compared to the average monthly imports in the last fiscal, creating havoc for the Indian players.
The import tide of stainless steel from China and Indonesia is fast turning into a deluge destroying many companies on its way, and threatening the very existence of the small, medium and micro industries in India. After all, the first half of 2021-22 witnessed a staggering 185% increase in import volumes of stainless steel flat products compared to the average monthly imports in the last fiscal, fuelled mostly by surge in Chinese and Indonesian imports.
The two countries China and Indonesia, which increased their exports by 300 per cent and 339 per cent, respectively, in the first half of this fiscal compared to the average monthly imports of the last fiscal, now have a share of 79 per cent of the total stainless steel flat product imports in the first half of FY22. It is a significant jump compared to the 44 per cent share in FY21. The average per month imports has jumped from 34,105 tonnes per month in FY21 to 63,154 tonnes per month this current fiscal–FY 22.
Indonesia’s imports share, which was virtually non-existent in 2016-17, has climbed to 23 per cent in the first half of this fiscal, with its average monthly exports increasing from 4,355 tonnes/month in the last fiscal to 14,766 tonnes/month in the first half of this fiscal. China’s average monthly exports too has jumped from 10,697 tonnes/month in the last fiscal to 35,269 tonnes/month in the first half of this fiscal.
The surge in imports was the result of the Finance Ministry’s decision of September 30, 2021 to revoke the imposition of CVD on China (September 2017) and end provisional duties on Indonesia (October 2020), which was based on the recommendations of the Director-General of Trade Remedies (DGTR), after a detailed investigation. The investigation had revealed that the two countries were resorting to non-WTO compliant subsidies to boost their exports to India and causing injury to Indian manufacturers.
In fact, the DGTR and their global counterparts had conclusively proved in its final finding that both these countries provide non-WTO compliant subsidies to the tune of 20 per cent to 30 per cent to their stainless steel manufacturers. And, these subsidies have created an imbalance in the Indian and international markets, reduced the competitiveness of Indian products in the domestic industry, causing material injury and persistent financial stress for home-grown businesses. It has forced the domestic industry to seek redressal from the surge in imports.
In fact, in India a disaggregated study of imported products in the first half of the current fiscal also reveals how excessive dumping has taken place in a particular J3 grade of stainless steel in the country. Imports of J3, a subsidised and dumped 200 series grade of stainless steel, with about 1 per cent nickel and 13 per cent chromium from China, has jumped from an average of 1,779 tonnes/month in 2019 to an average of 4,425 tonnes/month in 20-21 (249 per cent increase) and to average 25,346 tonnes to in just six months of 2021-22 (1,424 per cent) increase compared to the same period last year.
The share of this grade in total imports from China increased 23 per cent in 2019-20 to 72 per cent in 2021-22. Much of this import is even below the scrap prices and it hurts the MSME sector, the hardest. Such dumping also means major losses in terms of national exchequer through tax evasion and revenue losses.
This onslaught of Chinese exports to India has decimated the micro, small and medium enterprises (MSME), which had to bear the brunt of the impact. In fact, the imposition of provisional CVD on Indonesia in October 2020 and CVD on China in place from September 2017, had provided a “level-playing field” to these players, which got a much-needed relief from the dumped subsidised imports. The MSME, an industry having the capacity to produce about 1.2 lakh tonnes of hot and cold-rolled flat products, was able to operate at 90 per cent plus capacity utilization between October 2020 to February 2021.
However, the MSME sector suddenly finds itself grasping for breath to survive after the announcements of the 2021-22 Budget. Small-scale stainless- steel rollers and re-rollers, who make ingots from recyclable scrap as the first step in stainless- steel product manufacturing, and then produce hot and cold rolled materials for the all-India market, find themselves swamped by a massive and subsidised surge of imports from China and Indonesia.
Today, more than 80 induction furnaces and 500 patti/patta units, which provides primary raw materials for various downstream industries, are in dire straits. These downstream industries manufacture a variety of stainless steel household goods such as kitchenware, tableware, cooking range, sanitary items, cutlery pots, etc.
Prakash Jain, President, All India Stainless Steel Cold Roller Association, says: “The smaller Indian stainless steel players finds it virtually impossible to compete with the state-subsidised Chinese players, who get an 18 per cent incentive to export, under invoice their products by changing the label of the products to avoid paying duties and sell it at Rs 15 to Rs 17 per tonne cheaper in the Indian market.”
According to Jain, Gujarat has 70 rolling mills, each employing around 300 people and 50 induction furnaces, which makes ingots, the raw material for rolling mills and employs 500 each.
Not only will many of these jobs be lost resulting in massive unemployment but force many manufacturers to turn traders unless the CVD is imposed on imports from China and Indonesia.
Nice/New Delhi, June 14: India has transformed from being a consumer of global solutions to a contributor of solutions for the world, Prime Minister Narendra Modi said on Sunday.
Speaking after inaugurating the ‘Bharat Innovates 2026’ event in Nice, France, PM Modi said India’s innovation ecosystem is rapidly expanding and increasingly playing a role in addressing global challenges through technology and entrepreneurship.
“India now acts as a solution contributor rather than a solution consumer,” the Prime Minister said.
The Prime Minister further stated that India is innovating at both speed and scale, with a focus on creating sustainable solutions that benefit not only its own citizens but also the global community.
“Bharat innovates with speed and scale. Bharat innovates for a sustainable future. Bharat innovates for the whole world,” PM Modi said while addressing the innovation-focused event, jointly inaugurated with French President Emmanuel Macron.
Emphasising India’s approach towards technological development, the Prime Minister said the country’s priority is “technology for humanity” and human-centric innovation.
He added that innovation is deeply embedded in India’s culture and way of thinking. “Innovation is in India’s DNA,” Prime Minister Modi explained.
The Prime Minister also praised the growing partnership between India and France, describing it as a relationship rooted in shared values, mutual trust and common interests.
He noted that cooperation between the two countries spans a wide range of sectors, from security and strategic affairs to sustainability and innovation.
“India-France partnership covers security to sustainability,” PM Modi said.
Macron, who shared the stage with PM Modi at the event, described the Prime Minister’s presence at ‘Bharat Innovates’ as a matter of great honour for France.
He also congratulated PM Modi on completing 12 years as India’s leader and praised his role in strengthening ties between the two countries.
The ‘Bharat Innovates’ event has brought together leading startups, venture capital funds, innovators and technology leaders from India, France and several other countries.
Bengaluru, June 14: Union Finance Minister Nirmala Sitharaman on Sunday said that while Congress leader Rahul Gandhi was repeatedly criticising the country’s economic performance, “on the contrary, quarter after quarter, year after year India has been the fastest growing economy”.
Addressing the Bharatiya Janata Party’s (BJP) ‘Viksit Bharat’ event here, Union Minister Sitharaman noted that it is not the Central government, which is claiming that India is the fastest-growing economy, but the GDP numbers were indicative of this.
The International Monetary Fund (IMF) also said India was the world’s fastest growing major economy, she said.
She also added that the Lok Sabha Leader of the Opposition Rahul Gandhi keeps saying that there is a big disaster awaiting, but there is none awaiting India.
The Union Minister said that repeated criticism by the Congress leader could create a false perception among citizens about the country’s economic condition.
“The Leader of the Opposition (Rahul Gandhi) and his party try to make people believe that India is in trouble. Yet even amidst crises in West Asia and disruptions around the Strait of Hormuz, India continues to move forward,” Union Minister Sitharaman remarked.
Commenting on the impact of geopolitical tensions on fuel supplies and global trade, she said the challenges extended beyond fluctuations in crude oil and LPG prices.
“These challenges affect not only crude oil prices and LPG prices but global shipping as well. Shipping companies hesitate to send vessels through conflict zones. Insurance premiums increase because ships risk being attacked. Whether a vessel is empty or carrying crude oil, insurance costs rise significantly, and those costs ultimately have to be paid to ensure supplies reach the country,” she noted.
“Despite these global headwinds, the Narendra Modi government has ensured uninterrupted supplies of petroleum products,” she said.
Union Minister Sitharaman said the BJP’s 12-year journey under Prime Minister Modi was marked by both development and welfare.
She highlighted the reduction in multidimensional poverty, expansion of tap water connections, sanitation coverage, free LPG connections and food security programmes as the achievements of the Narendra Modi-led Union government.
“Twenty-five crore Indians have come out of multidimensional poverty. Extreme poverty has declined from 29.17 per cent in 2013-14 to about 11.28 per cent. Twelve crore household toilets have been built under rural sanitation programmes, achieving near-universal coverage,” the Union Finance Minister said.
She added that the government benefits were directly reaching the poor through the digital public infrastructure ecosystem built around the JAM trinity — Jan Dhan accounts, Aadhaar and mobile connectivity.
Union Minister Sitharaman said that India now has 58 crore Jan Dhan accounts, 144 crore Aadhaar identities and 125 crore mobile connections while UPI had become a global model for digital transactions.
She also rejected the Congress’ claims that the Centre had neglected Karnataka and cited tax devolution, grants and infrastructure investments to back her argument.
Union Minister Sitharaman said, “The Karnataka government frequently claims that the Centre is not giving the state its due share. Let us look at the facts. Tax devolution to Karnataka between 2014 and 2026 amounted to about Rs four lakh crore — five times more than the Rs 82,000 crore received in the comparable pre-2014 period.”
“Grants-in-aid to Karnataka between 2014 and 2026 stood at about Rs 2.71 lakh crore and that the state had also received more than Rs 18,000 crore under the Centre’s 50-year interest-free loan scheme,” the Union Finance Minister added.
Nice/New Delhi, June 14: Ahead of the inauguration of the Bharat Innovates Summit in Nice, Prime Minister Narendra Modi on Sunday interacted with select investors and venture capital leaders from India, France and several other countries.
The innovation-focused summit is set to be jointly launched by Prime Minister Modi and French President Emmanuel Macron.
The event will bring together leading startups, investors, entrepreneurs and technology stakeholders to explore opportunities for collaboration, investment and innovation-driven partnerships between India, France and the wider global ecosystem.
The interaction with investors comes as India and France seek to deepen cooperation in emerging technologies, innovation and entrepreneurship under their Special Global Strategic Partnership.
The Bharat Innovates Summit is expected to serve as a key platform for fostering cross-border investment and strengthening ties between startup ecosystems in the two countries.
Prime Minister Modi and President Macron are also expected to hold bilateral talks in Nice, where they will review the entire spectrum of India-France relations.
Discussions are likely to focus on innovation, technology, trade, defence cooperation and broader strategic issues, reflecting the expanding scope of engagement between the two nations.
PM Modi’s visit to France, which runs from June 13 to June 18, will cover three key cities — Nice, Evian and Paris.
Meanwhile, shortly after arriving in France, PM Modi shared glimpses of his interaction with members of the Indian community in Nice.
“A memorable welcome from the Indian community of Nice. Although they are several kilometers from their country, the bond of our diaspora with India remains stronger than ever,” Prime Minister Modi wrote on social media platform X.
Prior to that, upon arriving in Nice, the Prime Minister had shared details of his France visit in a post on X, saying that his engagements would span Nice, Evian and Paris.
“I have just landed in Nice. Beyond Nice, this visit to France includes programs in Evian and Paris,” PM Modi stated.
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