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CRISIL in its latest report has said that in a shift from its status as a net exporter of steel since fiscal 2017, India has become a net importer in fiscal 2024 (FY24), recording an overall steel trade deficit of 1.1 million tonnes (MT). The development highlights a dynamic change in the country’s steel trade landscape, largely influenced by surging domestic demand and increased imports from major steel-producing nations.

It stated India’s imports of finished steel reached 8.3 MT in fiscal 2024, marking a substantial 38 per cent increase year-on-year. The primary contributors to this surge in imports were China, South Korea, Japan, and Vietnam. Chinese steel imports alone accounted for 2.7 MT, while South Korea and Japan exported 2.6 MT and 1.3 MT of steel to India, respectively.

Moreover, it said imports from Vietnam surged by a staggering 130 per cent on-year, positioning Vietnam as a significant steel exporter to India and reversing its previous status as a major importer of Indian steel. The influx of steel product imports has outpaced India’s export growth. Despite a 11.5 per cent increase in exports of finished steel, totalling around 7.5 MT in fiscal 2024, the surge was insufficient to offset the growing volume of imports.