India is set to introduce a National Stainless Steel Policy in early 2024, as confirmed by industry and government insiders. This policy aims to chart the industry's medium and long-term objectives, anticipating a surge in domestic production amidst challenges posed by foreign competition, notably from China.
India's stainless steel industry is on the brink of a significant policy development. As per industry and government officials, the National Stainless Steel Policy is in its final stage of formulation and is expected to be revealed early next year, subject to approval by the Ministry of Steel and India's cabinet.
Abhyuday Jindal, the managing director of Jindal Stainless Limited, emphasized ongoing dialogues with the government to finalize the policy framework. He anticipates its completion by December, ready for its formal launch in 2024.
This policy is poised to delineate both medium and long-term objectives for India's domestic stainless steel sector. In the short run, the target production is slated to escalate to 10 million metric tons annually from the current 6.6 million metric tons.
Looking further ahead, government officials project an ambitious goal—ensuring domestic stainless steel production reaches 10 percent of the total steel production in the long term.
Mr. Jindal highlighted the pressing challenge faced by the industry—escalating dumping practices from China. This unrestrained influx of stainless steel into the Indian market, often priced lower than local rates, has repercussions particularly impacting smaller enterprises.
He emphasized the detrimental effects on micro, medium, and small enterprises (MSMEs), underscoring China's strategy of selling below Indian market rates, adversely affecting the entire industry.
India's imminent National Stainless Steel Policy signifies a strategic roadmap, aiming to propel the industry toward substantial growth. While envisioning increased production targets, the policy's true test lies in navigating challenges posed by unfair trade practices, especially the concerning dumping practices from China.