Indian steel industry captains expect the government to withdraw steel export duty once inflation moderates as Indian mills many capex will remain on drawing board if companies do not see the potential for new demand and are left with additional under-utilized capacities.JSW Group Chairman Mr Sajjan Jindal told PTI “India is a cost-competitive exporter of steel, and has an opportunity to take on a larger role in the global steel trade. The government continues to encourage manufacturing-led growth and merchandise exports from India. We view the export duties imposed on steel in May 2022 as a short-term headwind, since they have been imposed with the objective of controlling inflation. We continue to engage with the government on this matter and believe that the duties would be withdrawn once inflation moderates.”Business Insider reported that Tata Sons & Tata Steel Chairman Mr N Chandrasekaran is hoping that the government’s export duty hike is a short-term measure. He said “The government has been taking industry-specific steps to tackle inflation which we hope would be short-term measures. The steel industry in India is globally competitive and therefore Indian steel companies should be able to expand capacity.”Indian Steel Association’s Secretary General Mr Alok Sahay told Business Line that “We emerged strong with the world moving to a China plus one strategy but then the export duty came. So, in a way, it disrupted supply chain relationships Indian mills were establishing. If the export duty continues for a longer period, then maybe we will see some consequences. We are hopeful that there will be a withdrawal of export duty soon, now that there is cooling off in prices in India. It is pertinent that steel exports also generate foreign exchange.”
Indian steel industry captains expect the government to withdraw steel export duty once inflation moderates as Indian mills many capex will remain on drawing board if companies do not see the potential for new demand and are left with additional under-utilized capacities.JSW Group Chairman Mr Sajjan Jindal told PTI “India is a cost-competitive exporter of steel, and has an opportunity to take on a larger role in the global steel trade. The government continues to encourage manufacturing-led growth and merchandise exports from India. We view the export duties imposed on steel in May 2022 as a short-term headwind, since they have been imposed with the objective of controlling inflation. We continue to engage with the government on this matter and believe that the duties would be withdrawn once inflation moderates.”Business Insider reported that Tata Sons & Tata Steel Chairman Mr N Chandrasekaran is hoping that the government’s export duty hike is a short-term measure. He said “The government has been taking industry-specific steps to tackle inflation which we hope would be short-term measures. The steel industry in India is globally competitive and therefore Indian steel companies should be able to expand capacity.”Indian Steel Association’s Secretary General Mr Alok Sahay told Business Line that “We emerged strong with the world moving to a China plus one strategy but then the export duty came. So, in a way, it disrupted supply chain relationships Indian mills were establishing. If the export duty continues for a longer period, then maybe we will see some consequences. We are hopeful that there will be a withdrawal of export duty soon, now that there is cooling off in prices in India. It is pertinent that steel exports also generate foreign exchange.”
