India plans to cut import duty of steel

India plans to cut import duty of steel

According to market sources, the Indian government is considering a reduction of the import duty on steel in order to increase the availability in the domestic market and to control surges in steel prices. The government is contemplating reducing import duty from the current 10% level to 5% with the hope that a lower import cost of steel will keep Indian producers from raising prices in the future. Sources report that the Indian government is likely to call a meeting next week with the major domestic steel producers to determine a system of stabilizing steel prices and securing steady availability in the Indian domestic market. However, the Indian Steel Alliance (ISA), representing the steel manufacturers, thinks that the import duty on steel is already at bottom level, as the government has reduced the duty from 25% to 10% in the past six months. Instead, steel producers think the excise duty should be reduced.