More steep increase in basic customs duty on imports of stainless-steel finished products could have helped local players as India is currently seen as a soft spot for dumping, industry body ISSDA said Friday.
The Indian Stainless Steel Development Association (ISSDA) said this while reacting to the increase in customs duty on stainless steel products by 2.5 per cent to 7.5 per cent proposed in the Budget 2019-20.
The industry was expecting a higher level of protection in form of increased BCD on imports of stainless-steel finished products from 7.5 per cent to 12.5 per cent, at par with carbon steel.
Keeping in mind the protectionist measures taken up by other countries, this step would have translated into a major step to not only safeguard the domestic stainless-steel industry but also stimulating production growth, as India is a currently a soft spot for dumping, ISSDA President K K Pahuja said in a statement.
"However, BCD on stainless-steel semi finished products under HS code 7218 have been raised to 7.5 per cent from 5 per cent. This barely changes the scenario as there is little import of these semi-finished stainless-steel products in the country. Most of the import is in stainless steel flat products, where imports market share is as high as 20 per cent and needs protection," he said.
Kamdhenu Ltd CMD Satish Agarwal said the sector will see a demand of about 10 crore tonne TMT in the next three years as government aims to build 1.95 crore houses under PMAY-Gramin in two years.
Sameer Narpal, Head, Advocacy, Indian Refractory Makers Association (IRMA), said it lays the foundation for robust infrastructure development, which will require both steel and cement production to be stepped up.
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Refractory industry is fully geared up to invest in capacity and technology to cater to growing demand of these industries, he said.
A refractory is an equipment which can handle the high-temperature required for manufacturing hot steel.
Besides, it is also used by glass makers, aluminum, cement players etc.
Indian Metals & Ferro Alloys (IMFA) Managing Director Subhrakant Panda said,
Moreover, the thrust on 'Make in India' for sunrise & high tech sectors emphasizes the importance given to increasing share of manufacturing in GDP, he said