Safeguarding steel

A blunt instrument to curb imports won't address the travails of the industry

Urging steel imports have cast a troubling shadow over the prospects of the domestic industry when they have big-ticket expansion plans to cater to the government's $1.4 trillion infrastructure-led push for growth, which is highly steel-intensive in nature. This has depressed steel prices, making it difficult to sustain the industry's plans to add capacities. In this milieu, inventory levels of steel firms have risen from the normal 15-16 days to 30 days. Although India is the world's second-largest crude steel producer, it has become a net importer of finished steel since last fiscal, marking a shift in status as a net exporter since FY20.