US tariffs: India mulls steps to save steel firms

New Delhi: The government is evaluating a range of initiatives to strengthen the steel industry in response to US tariffs, which imposed a 25 per cent duty on steel and aluminium imports effective March 12. The measures under consideration include the adoption of innovative technologies, enhanced production-linked incentives (PLI) for steel producers, cuts in import and export duties, and efforts to diversify product offerings to cater to various industrial needs.

A top ministry official stated, “The government is reviewing all export-oriented markets and taking stock of the situation to bring more nations on board, aiming to boost exports of Indian steel.”

India, the world’s second-largest steel producer, has witnessed robust growth with major players like Tata Steel, JSW Steel, and SAIL. In the first quarter of FY25, crude steel production reached 36.61 million tonnes, surpassing previous levels Indian steel companies export to over 100 countries, reinforcing the nation’s emergence as a global steel demand hub. Sandeep Poundrik, secretary of the ministry of steel, projects that per capita steel consumption will rise from 100 kg to 158 kg by 2030.

Poundrik also highlighted key challenges in the industry, including plant efficiency, the adoption of artificial intelligence and machine learning, digitization and decarbonisation. “There is a need for research tailored to India’s unique industry structure, where 45 per cent of capacity lies in the secondary steel sector,” he noted.

In a bid to boost domestic manufacturing and move towards self-reliance, the government has significantly increased the outlay for the PLI scheme in specialty steel from Rs 55 crore in FY25 to Rs 305 crore in the FY26 budget estimate.

In a related move, the government recently launched the Steel Research Technology Mission of India (SRTMI), a joint initiative between the steel industry and academia aimed at promoting technological innovation. The initiative, along with three other schemes, seeks to address critical challenges in the sector, support collaborative research proposals, and aid early-stage start-ups in developing cutting-edge steel technologies.

Amid these developments, data from the Engineering Export Promotion Council (EEPC) revealed that India’s exports of engineering goods to the US increased by 18 per cent year-on-year in January to $1.62 billion, with total exports reaching $15.6 billion in the first 10 months of the fiscal year. This growth was driven by higher shipments of aircraft parts, electrical machinery, automobiles, industrial machinery, and medical instruments.