The Indian steel industry is facing a two-pronged battle in the form of high tariffs imposed by the US and rising imports from countries like China, which is leading to a fall in the metal’s prices in the country.
The United States increased tariffs on Indian steel to 50 per cent, while the European Union is proposing new tariffs, creating a ripple effect across the global steel trade and causing uncertainty for countries like India and the UK.
To mitigate their impact, the Indian government has taken measures such as initiating anti-dumping probes and safeguard duties, but the industry is seeking more reforms and urgent steps to protect small producers and manufacturers hit by rising imports and falling steel prices.
Steelmakers now suggest the government to take the route of exporting finished goods that attract lower tariffs so that the industry can thrive.
“The world challenged India with ‘Make-in-India’, and Indian manufacturers responded with the ‘Made-in-India’ benchmark, meeting global quality and delivery standards. By converting steel volume into precision-formed components, India can become a solutions provider for the world,” said Dhirendra Sankhla, Director of Mother India Forming (MIF) – a manufacturer of customised steel tubes and profiles.
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Sankhla suggests exporting high-value cold-rolled steel components and other value-added items that face lower duties to reduce total landed cost.
“By offering slitting, precision forming, surface treatment, and pre-assembly, Indian exporters can shift from raw or semi-finished categories – typically exposed to ad-valorem duties – to finished goods that attract lower effective tariffs and higher buyer willingness, reducing total landed cost”, he explained.
Cold-roll sheet forming converts steel coil into engineered profiles, tubes and components, which are often classified differently for trade purposes, delivering greater downstream savings for original equipment manufacturers (OEMs).
Since the manufacturing process shapes steel into complex profiles and components, it enables the production of structural and aesthetic components that can be used in a wide range of industries – from construction and agriculture to automotive and infrastructure.
In the face of fluctuating tariffs, India’s strategy should be to add engineering, control quality, and export finished outcomes, he added.
“India’s growing capacity, improving technology adoption, and competitive labour ecosystem mean the country’s firms can deliver precision profiles to international standards, thereby protecting buyers from policy volatility while creating value here in India,” he said.
According to the World Steel Association, India remained the world’s second-largest steel producer by producing 149.4 million tonnes of crude steel in 2024.
“High-value component exports support GDP growth and employment, create skilled jobs in manufacturing, engineering, quality control, logistics, tooling, R&D, and supply chain services. Expanding exports will strengthen trade revenue and enhances India’s industrial competitiveness globally,” Sankhla said.
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