The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has called for an increase in import duty on steel products to a minimum of 10 percent so that domestic manufacturers will be able to withstand the increasing flat steel inflow from China.
India's 2012-13 budget proposes to increase the import duty on non-alloy flat rolled steel products from five percent to 7.5 percent. Although China exports large quantities of boron-added hot rolled coils, sheets and plates under the alloy steel category, these products are subject to only five percent import duty.
According to ASSOCHAM, from October 2011 to February 2012 India's steel imports have increased by 120 percent compared to the same period in the previous year.
With a surplus capacity of 130 million mt of steel, China remains the world's largest steel exporter, accounting for about 20 percent of the global steel trade.