The Indian government has proposed scrapping the import duty on ferronickel, a key input in production of stainless steel, from 2.5 percent currently, according to the national budget 2024-25 presented before the Indian parliament on Tuesday, July 24.
The exemption from duty is expected to reduce the cost burden on Indian steel manufacturers, enhance their global competitiveness, and potentially pass on cost savings to customers, the government said.
“We welcome exempting duties on ferronickel and the continuation of zero duty on ferrous scrap and pure nickel, and that will help the domestic stainless steel industry and alloy steel industry to maintain its competitiveness," Abhyuday Jindal, managing director of Jindal Stainless Limited, said.
The removal of customs duty on ferronickel should help in the cost of production for stainless steel, as raw material accounts for 70 percent of the total cost of sales and is the single largest cost component for stainless steel producers, and ferronickel is one of the key raw materials for stainless steel, for which the industry is largely import-reliant due to the lack of domestic availability.