STAINLESS STEEL: A PERILOUS EXISTENCE LET’S BE IN TOUCH

How faulty government policies led to a surge in Chinese and Indonesian imports of stainless- steel flat products, which sound

the death knell of many small and mid-sized players. Instead of continuing with the imposition of countervailing duty (CVD) on Chinese imports—imposed on September 2017– and provisional duties on Indonesian imports on October 2020, the government decided to suspend such measures in the Budget of 2021-22. While the government argued that imports had been allowed to cool down high steel prices,

it resulted in a sudden spike in import, causing injury to Indian manufacturers across the value chain. The CVD and provisional duties had been imposed after a detailed investigation by the Director-General of Trade Remedies, revealed that the two countries were resorting to non-World Trade Organisation compliant subsidies to boost their exports to India.

 

Unlike India, most other countries in the world, including the US and the European Union, have imposed strong anti-dumping measures, whenever there has been a surge in imports, especially from China, to protect its domestic industries. So, it is important for policy makers not just maintain a fine balance between the demands of various sectors of the economy, but also meet the objectives of a Atmanirbhar Bharat.

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