As the global proliferation of commercial wars and the economic environment becomes unpredictable, there is a demand to protect the vulnerable sectors of the Indian economy from the Chinese discharge, especially in steel.
India has constantly protected its upward steel industry to guarantee economic sovereignty, using regulatory tariffs and shields. The 2025 safeguarding tasks against the Chinese discharge of this approach.
However, the increase in tense steel costs posterior sectors such as engineering, construction and automatic components, increased competitiveness. Given this context, let’s decode the consequences of such protection and the path to follow for the Steel sector of India.
Protected on scale
Since independence, and more specifically in the last decade, India has systematically implemented a multiple strategy to protect the steel sector, combining industrial, commercial, rates and non -tariff measures.
For example, industry, the National Steel Policy, 2017, established an attentive goal to expand raw steel production at 300 million tons (MT) by 2030-31, with the aim of positioning India as a global steel manufacturing center.
The PLI 2021 scheme for specialized steel assigned ₹ 6,322 million rupees to increase national production by 25 TM and cutting imports.
Similarly, Mission Purvodaya (2020) aimed to revitalize the steel ecosystem of the Eastern India. Infrastructure initiatives such as Make-IN-India, and national infrastructure pipe also aim to stimulate national steel demand.
On the commercial front, the decisive measures of India Tok to protect their steel sector from excess global supply, in part of China, Japan and South Korea. In 2016, it introduced a minimum import price (MIP) into 173 steel products to counteract global plex measurement prices. When MIP expired, India changed to a more specific commercial monitoring through the steel import monitoring system (Sims), introduced in 2019, which requires the anticipated record of steel imports.
Tariff instruments also played a fundamental role, although sometimes at the expense of the downstream industries. In 2018 and 2020, India increased basic customs tasks in several 15 percent steel products. Since 2015, India has imposed anti-dumping tariffs on imports from countries such as China, South Korea and Japan, and applied compensatory tariffs in Chinese steel in 2017. In 2024-25, policy formulators once again introduce the competition of fafeguard measures.
In the non -objective domain, the policy formulators introduced the mandatory bis certification for steel products in 2016, which limits the influx of lower quality imports and then increased their scope under the makeup mission in India.
Consequently, the introduction of quality control orders (QCO), expansion of coverage to more than 100 steel categories, assured the highest product quality standards. Restrictions in defective and steel of more closed seconds for cheap imports.
India’s surveillance also exalts the third country route change through the EAA, addressing the misuse of NAFTA through the COO rules of the countries of the ASEAN and introducing the 2020 Caroto, all of which complement the protection measures
Down face anguish
However, the downstream industries such as automotive components, aerospace, defense and heavy engineering faced higher costs and a reduction in competitiveness, building the growth of value added exports of India in the midst of a growing protectionism.
Evite India’s Robust Base in Basic Carbon and Mild Steels, Domestic Availability of Niche, High-Performance categories Like High-Strongth Alloy (Crankshaft), Heat-Resistant Wear Steels Hulls), Weathering and Corrosion Steels (Shipping Containers), Impact-Resit Steels (Railway Wheels) and the austenitic and martenitic stainless steel (medical needles, tweezers, scissors, etc.) is remarkably scarce.
Manufacturers of automotive components that produce gudgeon pins, piston rings, crankshafts and sleeves often depend on imported alloy steels such as 4340 and steels for nitrced tools, since indigenous alternatives frequently fall more cold.
In defense manufacture, Indian ambitions to export tanks and armored vehicles are hindered by the lack of high-grade armadizos steels (for tanks torques) and Crucial Hy-Series steels for submarine construction.
Even when available, steel often becomes economically unfeasible; For example, while India exports 100 cc bicycles in around $ 950, China does it at $ 650 thinner, exposing an abyss of structural competitiveness.
Similarly, we have a price in the construction of the ship. In the aerospace, the limitations are even more acute: the super -based vital ones based on plane wings, reaction engines and gas turbines continue to be strongly imported, staging India’s aspirations in global defense exports.
The renewable energy sectors, partially windmills, suffer in a similar way due to the limited supply of ultra -height steels, while the railroads fight with manganese alloy steels of precision degree for wheels that last dynamic loads.
Heavy petroleum machinery and drilling industries also import hardened tools for equipment such as drilling machines and porch cranes. This specialized steel deficit not only increases costs, but systematically undermines the increase in engineering exports. Strategic reforms in the production of specialized steel to really transform the manufacturing narrative of India is essential.
Advance
The National Manufacturing Mission (NMM) to propose, replacing PLI incentives, aims to raise the manufacturing participation of India to 25 percent of GDP and create 100 million jobs. Recognizing steel as an essential critical scale industry for industrial competitiveness, the NMM must address the segments both upstream and downstream to build a resistant and vibrant India, one that is free of spill, and Eve deWardarary in dependency, and Eve of dependence on fortandaria, and dependent, and depending, and depending, and depends on the dependence, and depending, and depending on, and depending on, and depending on, and depending on, and depending on, and depending on, and depending on, and depending on, and depending on, and depending on It depends and depends and depends and depends and depends and depends and depends and depends and depends and depends, and depends, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend. Depend, and depend, and depend, and depend, and depend, and depend, and depend, and depend. They depend, and the intentional dependence, and the dependence of the intensaryry innarnary, and the dependence to inengar in the inengar generation, and the dependence in the turbulent global environment of the INEN -engainería in the turbulent global environment of intensity in its part of intensity.
Our steel sector must become fundamentally competitive of export; Therefore, the achievement of the scale, the strengthening systems, the improvement of the sophistication and the intersectoral synergies of promotion are crucial. Specific interventions of the sector are essential: while large companies (> 20 MTPA) must be encouraged for BAF-BOF-BOFIE routes is equally necessary for MSME, which guarantee access to the lows of filmmakers, green energy sources, such as severe energy sources, severe energy sources.
Political support for the supply of uninterrupted and profitable coal for large -scale industries is also necessary.
For true resilience, the sophistication of scale and value chain is critical. Strategic FDI through selected foreign players can grow catalysis while counteracting oligopolistic tendencies.
In 5-8 years, the Steel sector of India must be free of anti-competitive practices, backed by world class infrastructure, technological dynamism and a fair and competitive environment. NMM support must be over time, based on merit and transition to an open and promoted market economy.
The writer is a teacher and boss, Iift, New Delhi. The views are personal
Posted on April 25, 2025