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The Indian Steel Association (ISA) has said that the imposition of export duties on steel products will send a negative signal to investors and adversely impact capacity expansion projects under the PLI scheme. The body further said, steel industry in India has made the largest investment commitments ranging from 36 percent to 40 percent of total investments committed by the entire manufacturing sector. It also said these investments in capacity building are needed to achieve the Atmanirbhar Bharat Vision.

In light of this decision, the association said new capacities creation may get impacted as they would be seen as uneconomical thus affecting the much-awaited investment against PLI scheme for specialty steel. Besides, it may have a major impact on the entire supply chain in the long term. The economic activity of a few states dependent on minerals and steel will be further hit. These measures need to be deliberated and then a calibrated approach may be taken. The steel industry continues to remain committed to nation-building.

Meanwhile, the government has waived customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry, a move which will lower the cost for the domestic industry and reduce the prices. Also, to increase domestic availability, the duty on exports of iron ore was hiked up to 50 percent, and a few steel intermediaries to 15 percent.