ISA requests import duties and market-based prices

ISA requests import duties and market-based prices

The Indian Steel Association (ISA), in order to reach its goal of 60 million ton production by 2010-2012, has requested the government to impose import duties on steel products from competing countries, in addition to market-determined prices and a fair return on investment. In its recommendations for the National Steel Policy, the ISA stated that the Indian domestic steel industry is one of the least-protected in the world and is subject to cheaper imports from competing countries. Therefore, the ISA explains that the Indian government should give a satisfactory amount of protection to the industry in the form of import duties. According to the ISA, which includes members like India's major steel firms Essar Steel, Jindal Iron & Steel and Steel Authority of India Ltd. (SAIL), in a globalized market economy, market forces should be permitted to ensure price corrections and determine price levels. The steel organization also asked the government to grant the industry a satisfactory return on investment so that it can remain attractive to outside investors. ISA also requested the government to guarantee the supply of raw materials such as iron ore, as well as to develop infrastructure such as ports, power, and transport capacity in order to improve the ability of the domestic steel industry to reach its production target.