Gandhinagar, Jan 5 (KNN) The Indian stainless steel sector is dealing with the adverse effects of a substantial surge in inexpensive Chinese imports, leading to the closure of approximately 30-35 per cent of medium and small businesses in Gujarat between July and September of the previous year.
Rajamani Krishnamurti, President of the Indian Stainless Steel Development Association (ISSDA), disclosed this information in an interview with MoneyControl.
He highlighted the severe impact on Gujarat, which represents 80 per cent of Micro, Small and Medium Enterprises (MSMEs) in the industry.
To navigate the challenging circumstances, many other MSMEs in the region have been forced to reduce their capacities to ensure survival.
The influx of low-cost Chinese imports has exerted significant pressure on the profit margins of domestic stainless steel players.
In response, the industry took collective action by filing a petition last year, urging the government to impose Countervailing Duty (CVD) on Chinese stainless steel products.
It’s noteworthy that steel imports were previously subject to duty until the 2021 union budget removed such levies.
Subsequently, most MSMEs have had to operate on a diminished scale, with some transitioning to trading activities.
Krishnamurti emphasised the dire situation by revealing that 20 out of 80 induction furnace companies in Ahmedabad have ceased operations.
Additionally, over 100 re-rollers, involved in the manufacturing of diverse objects such as utensils, have shut down operations due to the adverse impact of cheaper imports.
(KNN Bureau)
