The Indian stainless steel industry has urged the Union Government to slash the existing import duties on key raw materials in the upcoming Union Budget 2021-22. In its recommendations to the Ministry of Finance, Indian Stainless Steel Development Association (ISSDA), the apex body representing the domestic industry, has appealed to exempt the 2.5 per cent basic customs duty (BCD) levied while importing key raw materials, including ferro-nickel and stainless steel scrap. Presently, both these raw materials are unavailable in the country, making their import mandatory. ISSDA has also sought abolition of the existing 7.5 per cent import duty on graphite electrodes, a critical component in stainless-steel manufacturing, as they constitute a major share of input cost. ISSDA has also sought an increase in the import duty on stainless-steel flat products to 12.5 per cent, to bring it at par with carbon steel products, in order to check undue imports.

KK Pahuja, President, ISSDA said, “The government has set in motion a wave of reforms to boost economic growth and the Indian stainless steel industry is ready to contribute to the ‘Atmanirbhar Bharat’ vision. This is the optimum time for the government to stop considering essential raw materials as source of revenue and provide stimulus to domestic manufacturing by exempting duties on importing critical raw materials. This step will improve the competitiveness of the domestic industry and in turn, provide impetus to the hard hit MSME segment, which has a 40 per cent share in the domestic stainless-steel industry.

Additionally, undue imports have harmed the domestic industry which is operating at 60 per cent of its capacity and is financially stressed after COVID-19 related disruptions. We request the government to rationalise the duty structure in order to catalyse the revival of this sector that has immense potential to generate additional jobs.”