Even as the government is actively considering the imposition of additional duties to curb the influx of imports of cheaper steel into the country that are hurting domestic steel producers, a key exporters’ body has urged the Centre to desist from such protectionist measures as they would impact smaller engineering firms’ competitiveness.

EEPC India, which represents producers of engineering goods that account for a quarter of India’s merchandise exports, has flagged that domestic steel output that has risen about 5% between April and August has not kept pace with consumption which grew 13.8%, making imports imperative. While finished steel imports from China have risen 31.7%, imports from Japan (up 130%), and Vietnam (52%) have also grown, it pointed out.

Without access to affordable inputs like steel, the ambitious “Make in India” initiative, particularly in high-value sectors, will face considerable challenges, it cautioned, mooting the need to keep domestic steel prices competitive.

“The price differential between Chinese steel and Indian-produced steel is significant. This price advantage enables downstream industries, especially MSMEs, to remain competitive in domestic and global markets,” EEPC chairman Arun Kumar Garodia said.