Troubles in China are expected to hurt the domestic steel industry as manufacturers of the neighbouring country would dump their products in India, industry body Assocham said today.
Steel imports from China into India in 2014-15 has already surged by over 232 per cent, it said in a statement.
"Troubles within China are expected to spell disaster for the Indian steel industry as desperate Chinese manufacturers would dump their products more rigorously," it said.
The devaluation of yuan would make Chinese exports cheaper and it has created more room for their surplus steel in growing markets like India, it said.
"Defective steel is being dumped into India to the detriment of our construction and health of people," it said adding tin plate exhibits an example of rising defective steel and need for strict quality compliance.
China has 400 million tonnes of surplus capacity against a demand of 741 million tonnes, it said.
It added that excessive capacity of China is four times the total capacity of India.
