Steel Industry Is On An Expansion Mode

India’s steel industry today faces challenging market conditions arising out of a global steel glut. In an freewheeling interaction with The Dollar Business, Chaudhary Birender Singh, Union Minister of Steel, GoI, talks at length about the government’s initiatives and plans to overcome global challenges while fueling growth and enhancing competitiveness of Indian steel industry.

- Kanchi Batra

TDB: Exports from the iron & steel industry areon the rise. What policy changes have facilitated this?

Chaudhary Birender Singh (CBS): Over the last two years, the government has taken several targeted interventions in the form of trade remedial measures such as imposition of minimum import price (MIP), anti-dumping duty, safeguard duty, etc., and strategic interventions such as an increased focus on the expansion of the MSME sector, raw material security, enhanced R&D activities, reduction in import dependency & cost of production to tackle the global glut in steel industry.

At the same time, 100% FDI through the automatic route has been allowed and large infrastructure projects in the public-private partnership (PPP) mode are being formed. Together, these steps have resulted in improved capacity utilisations, increased cash flows and profit margins for steelmakers, reduced imports and significantly high exports. We also hope that the new National Steel Policy (NSP) will encourage the industry to reach global benchmarks. Similarly, policy clarity and stability in the leasing of mines and forest clearances are also bound to benefit the sector.

TDB: According to Steel Ministry data, exports surged by almost 78% y-o-y during the first 11 months of FY2017, while imports plunged by 39%. Can we expect this trend to continue?

CBS: The growth has been sustained in