The imposition of the 15 percent export tax by the Indian government recently will not impact Indian steelmaker JSW Steel Limited’s growth plans as the levy is expected to be for the short term, JSW Steel’s chairman Sajjan Jindal said on Friday, July 1.
“We view the export duties imposed on steel in May 2022 as a short-term headwind, since they have been imposed with the objective of controlling inflation. We continue to engage with the government on this matter and believe that the duties will be withdrawn once inflation moderates,” Jindal said.
“The future of the Indian steel industry is exciting, with a steadily expanding domestic market. During the fiscal year ended March 31, 2022, Indian steel consumption grew to 106 million mt from the pre-pandemic level of 100 million mt. Demand is expected to grow at a healthy rate through the current decade,” he said.
The company said that its standalone capacity will increase to 30.5 million mt in the fiscal year 2024-25 from the current capacity of 23 million mt following completion of ongoing 7.5 million mt per year brownfield expansion. Capacities of JSW Steel subsidiaries Bhushan Power and Steel Limited and Jindal Ispat Special Steel Products Limited will be increased to 5 million mt per year and 1.5 million mt per year respectively.