Protest Against 25% Safeguard Duty On Steel Imports

Dec3,2024 | Gautam Jalandhari | Ludhiana

Industry in Punjab unequivocal opposition to the recent proposal by the Steel Minister to impose a 25% safeguard duty on steel imports. This measure, if implemented, will have severe repercussions on the broader economy, downstream industries, and the cost of essential infrastructure projects. Small and medium enterprises (SMEs & MSMEs), which form the backbone of the economy, will be disproportionately affected by this policy. Higher steel prices will squeeze their margins, potentially leading to closures and job losses, undermining the government’s vision of a robust SME sector.

Impact on Domestic Industries

The imposition of a 25% safeguard duty on steel imports will:

Increase Production Costs: Steel is a critical raw material for several industries, including construction, automotive, and manufacturing. Higher steel prices will directly increase the cost of production for these sectors, making them less uncompetitive in both domestic and international markets.
Stifle Competition: Restricting imports through high duties will reduce competition, allowing domestic steel manufacturers to increase prices without accountability. This could lead to inefficiencies and higher costs for end-users.
Delay Infrastructure Projects: India’s ambitious infrastructure development plans could face significant delays and budget overruns due to increased steel costs, ultimately slowing economic progress.
India will uncompetitive in Global Market.
Unemployment will increase due to loss of business.
Inflation will increase due to high cost of Products in Indian Market.
The down in manufacturing in the country at 11^th month low as already reduced the GDP to 5.4. It will further go down if the safe guard duty is levelled.
Govt. is trying to save 6 major steel producers and destroying to 63.38 Million MSME Units.

This proposal contradicts the government’s "Make in India" initiative, which seeks to position India as a global manufacturing hub. Competitive steel pricing is essential for attracting foreign investments and enabling Indian manufacturers to produce world-class goods. Imposing such a high safeguard duty could invite retaliatory measures from trading partners and hinder India’s export potential.

Recent financial data highlights the strong profitability of the steel industry, with robust margins ranging from 9K to 15K per ton. Introducing additional duties would be unwarranted and could jeopardize the sustainability and growth of SMEs in the sector. Such measures risk destabilizing the market balance, adversely affecting domestic consumers and the broader industry.

Industry in Punjab urge the government to adopt a balanced approach that addresses the challenges faced by domestic steel manufacturers without disproportionately burdening downstream industries. Measures such as incentivizing domestic steel production, improving supply chain efficiencies, and reducing input costs can provide sustainable support without resorting to protectionist policies

For this Press Conference will be conducted Mr. Upkar Singh President CICU, Sh. S C Ralhan FIEO, Sh. Honey Sethi, General Secretary, Sh. Harsimar Singh Lucky President UCPMA, Sh. Gautam Malhotra Vice President CICU, Sh. Narinder Bhamra President FMAI Sh. Charanjit Vishivkarma, Sh. JS Bhogal, Organising Secretary CICU, Sh. Satinder Singh, Barnala, Vice President CICU, Sh. Satinderjit Singh Autom, Sr. Member CICU.

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