There has been disappointment in the Indian steel industry that the import duty on steel has not been raised from five percent to 15 percent as recommended by the country's steel ministry. To counter the effects of the global economic downturn, the Indian government rolled out an interim budget of $196 billion on February 16, but failed to disturb any existing tax structure.
Commenting on the issue, Essar Steel executive director Vikram Amin stated, "The steel industry has been seeking an import duty to deter countries from dumping their goods in India and it will also insulate Indian companies from unfair trade practices. The government can impose this duty during the course of the year by a notification."
Vinod Mittal, vice chairman and managing director of Ispat Industries, said, "Despite being an interim budget, because of the current extraordinary situation the industry and economy is currently passing through, the steel industry was expecting a set of measures aimed at reviving demand for steel and controlling dumping of steel products from a host of foreign countries."
Mr Mittal stated that the budget was a good opportunity for the government to announce major initiatives in this direction, adding that many countries have already announced stimulus packages to the tune of hundreds of billions of dollars to save employment and revive demand.
NC Mathur, director of corporate affairs of Jindal Stainless, said that in the current economic situation the Indian government could have at least given some relief to the steel industry.