Jindal Stainless Ltd. (JSL) Managing Director Abhyuday Jindal has urged the Indian government to impose a 20-25% import duty on stainless steel to prevent a potential surge in dumped imports. Jindal expressed concerns that India, as a growing market, could become a target for global manufacturers looking to offload excess steel, especially after the United States imposed new import tariffs on the metal.
Speaking at an industry event on Thursday, Jindal explained that US President Donald Trump’s decision to impose a 25% import tax on steel and aluminum could disrupt global trade patterns. “The US move could benefit India’s domestic industry in the long run, but it also raises concerns of excess global supply being diverted to India,” he noted.
Current Import Duties Inadequate, Says Jindal
India currently has a 7.5% basic customs duty on stainless steel imports, which Jindal argues is insufficient to protect domestic manufacturers from foreign competition. “If other markets are closing, then global manufacturers will turn to India. The current duty is not enough—we need support from the government to ensure a level playing field,” he said.
Jindal emphasized that raising import duties would encourage domestic production and support long-term industry investments. “Many Indian manufacturers have turned to imports as they are cheaper. This puts pressure on local industries and discourages capacity expansion,” he warned.
Impact on Domestic Steel Industry
Currently, India’s stainless steel sector is operating at 60-65% capacity utilization, indicating that domestic producers have ample room to meet growing demand without heavy reliance on imports. However, if imports continue at lower prices, Indian producers may face losses, reducing investment in the sector.
Jindal also highlighted India’s increasing demand for stainless steel, noting that per capita consumption has risen from 2.6 kg in 2015 to 3.1 kg today. With India’s GDP and income levels on the rise, demand is expected to grow further.
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Industry Awaits Government Decision
While calling for stronger trade protections, Jindal acknowledged that the industry must wait and watch before making major investment decisions. “If the government does not take action on import duties, investment plans in the sector will face delays,” he added.
The Indian government has yet to respond to these industry concerns, but with growing calls for increased tariffs, stakeholders will be watching closely for policy changes that could impact domestic manufacturing.
This news was first reported by PTI.
