Indian steel ministry has suggested raising the import duty levied on certain steel products to 15% from currents rates ranging between 5% to 12.5%, As per sources and government documents analysed by Reuters.
Curbing steel import by increasing taxes is a part of a major step taken by government to reduce “non-necessary” import owing to weakening rupee. The proposal is likely to be discussed on Wednesday in the trade ministry.
An anonymous sources told Reuters that “The broader message is to address the trade balance but we will try to promote ‘Make in India’ by encouraging domestic (steel) production,”. Further, He added that there is no surity on the implication of the import duty to be imposed. Steel and trade ministry is yet to comment on the proposed move.
India was net steel importer for the first time since two year from April to June. It’s foreign supplies started to reach 2.1 million tonnes which is 15% more from the previous year.
As per the record 8.4 million tonnes of steel was imported in India in 2017-2018 financial year. Out of 8.4 million , 45% of the total steel came from South Korea and Japan , the countries in free trade agreement with India.
Analysts estimates that other steel suppliers like China, South Africa, Malasiya, Russia and Indonesia shall be affected by implication of import duties. The import duty will not be imposed on North Asian countries.
India is also mulling over raising import duty levied on India certain farm commodities. is considering raising import duties on some farm commodities.