In March 2016, India’s iron and steel imports were about three times their exports. But this changed dramatically in March 2017, when India’s exports were more than double their imports, Mint has reported.
According to the daily’s report, the decision to impose a minimum import price and anti-dumping duty, made by Prime Minister Narendra Modi’s government, supported the industry and helped exports grow. However, another important factor that contributed to the growth in steel exports was the plunge in Chinese ‘export blitzkrieg’ of the previous two years, as described by the Mint.
The industry believes that a 9 to 10 per cent rise in steel consumption in the first six months of the year in China and a nearly 28 per cent drop in the country’s steel exports gave respite to the Indian steel industry.
In South Korea, China’s biggest steel export market, its exports dropped by over 16 per cent year-on-year while India’s steel exports to the country rose by around 20 per cent. Similarly, in Vietnam, China’s steel exports dropped by 41 per cent while India’s exports rose by around 329 per cent year-on-year.
Data released by the International Trade Centre shows a 25 per cent (year-on-year) droop in Chinese steel exports every month.
In its report, Mint said that growth in India’s steel exports was dependent on a fall in Chinese steel exports and on a fall in India’s own steel imports.
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