The secondary steel sector in India is finding resilience in the face of global trade headwinds, with Goods and Services Tax (GST) reforms emerging as a critical support mechanism. Industry leaders note that while the imposition of tariffs by the United States has created pressure on exports and pricing, structural changes in India’s taxation regime have helped mitigate some of the adverse effects.
Yogesh Mandhani, President of the AIIFA Sustainable Steel Manufacturers Association, emphasised that GST reforms have streamlined processes, improved compliance, and reduced tax-related inefficiencies. For secondary steel producers, who often operate with thin margins and face stiff competition from integrated players, these reforms have provided much-needed breathing space. By lowering logistical bottlenecks and ensuring smoother credit flow, the GST framework is enabling the industry to withstand international market volatility with greater confidence.
The reforms have also brought greater transparency and uniformity across states, which has been especially beneficial for small and medium-scale steel producers. Previously, interstate tax disparities created cost escalations that eroded competitiveness in export markets. With GST creating a unified taxation structure, manufacturers can now focus on productivity and scale without the burden of fragmented tax regimes.
While tariffs imposed by the US have undeniably weighed on India’s steel trade, the domestic policy environment is offering a cushion. The government’s consistent push to simplify procedures and digitise compliance under the GST system is fostering operational efficiency. This resilience not only safeguards the interests of producers but also strengthens the country’s broader industrial ecosystem.
Industry experts believe that continued reforms, particularly in easing working capital flows and ensuring faster refund mechanisms, will further reinforce the sector’s ability to thrive amid global trade uncertainties. The experience underscores the role of domestic policy in shaping competitiveness in an increasingly challenging international market.
