India’s steel trade sector is witnessing significant changes as global market uncertainties and domestic policy initiatives reshape its landscape. Recent data highlights a sharp decline in both exports and imports of finished steel, reflecting broader trade challenges and India’s focus on boosting self-reliance.
In April 2025, India’s finished steel exports dropped by 25.7 per cent year-on-year, impacted by fluctuating global demand and protectionist measures by some steel-importing nations. Simultaneously, finished steel imports into India fell by 11.3 per cent, underscoring the government’s push to reduce dependence on foreign steel and strengthen local production capabilities.
To counter these trade pressures and support domestic steel exporters, the government announced the reinstatement of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme from June 1, 2025. This scheme reimburses exporters for embedded taxes and levies, enhancing the price competitiveness of Indian steel in international markets.
Further, India is actively working to finalize an interim trade agreement with the United States to avoid the imposition of a steep 26 per cent tariff on Indian steel exports. Such a tariff could have severely impacted trade volumes. High-level U.S. trade officials are expected to visit New Delhi soon for final negotiations, signaling a strong diplomatic effort to safeguard steel exports. Looking ahead, India’s steel sector is navigating a complex global environment by reinforcing domestic production, offering targeted export incentives, and pursuing strategic international trade agreements. These combined efforts aim to sustain and expand India’s steel industry on the global stage despite ongoing uncertainties.
