The Daily Brief India’s fight to save its Steel Industry
12 snips
Jun 24, 2025 India is grappling with the challenge of protecting its steel industry from fierce competition, especially from China. The government's strategy includes limiting steel imports while considering the needs of small businesses reliant on this metal. Additionally, the podcast delves into the role of Virtual Power Purchase Agreements, aimed at boosting renewable energy in the sector. Finally, it highlights exciting developments in India's energy and financial landscapes, showcasing the growth supported by favorable economic conditions.
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India's Steel Import Challenge
- India has become a net importer of steel with imports rising by 20% recently despite efforts to limit them.
- The government has responded by imposing a 12% safeguard duty and enforcing strict quality certifications on steel imports.
Steel Industry Growth & Protection
- India’s steel industry grew under heavy government control post-independence but liberalization in 1991 allowed it to become the second largest global producer.
- The government still maintains protection, evident in the 2017 National Steel Policy aimed at boosting capacity and reducing import dependency.
Challenges for Indian Steel Producers
- India’s steel producers struggle due to dumping by countries like China, which sell steel below market cost to gain share.
- Domestic steel production is also hampered by low labor productivity, outdated technology, high credit costs, and expensive logistics.