India has become a net importer of finished steel, with imports surpassing exports during September, according to provisional government data. The country imported around 0.65 million metric tonnes of finished steel, compared with exports of approximately 0.58 million tonnes. This marks a shift in trade dynamics, reflecting changing patterns in domestic demand, global pricing, and competitiveness in the steel sector.
Although imports fell by nearly 36 per cent year-on-year, the volume still outpaced exports, which grew by 47.6 per cent over the same period. Analysts attribute the decline in imports to weaker domestic consumption in some sectors and lower inflows of certain high-value steel grades. However, the higher export growth could not offset the overall import volume due to the ongoing need for specialised steel types not produced locally in sufficient quantities.
In response, the government is reportedly considering the introduction of a three-year import tariff of around 11 to 12 per cent on selected steel products. The proposed measure aims to safeguard domestic producers from low-cost imports, particularly from countries benefiting from surplus capacity and subsidised production.
Industry observers note that while India remains one of the world’s largest steel producers, rising infrastructure and manufacturing demand has kept import levels steady in niche categories such as electrical, stainless, and coated steels. The potential tariff could offer some relief to local manufacturers facing margin pressure amid volatile raw material prices and global competition.
The shift to a net importer position highlights the delicate balance between supporting domestic industry and maintaining adequate supply for fast-growing sectors such as construction, automotive, and engineering. Policymakers are expected to monitor the situation closely as they evaluate future trade and tariff decisions to maintain stability in the steel market.
