India China Relation: Amid the ongoing border dispute between India and China, an interesting picture has emerged on the trade front. India has imported a record amount of steel from China in the first eight months of the current financial year. According to government data, during this period India imported a total of 6.5 million metric tonnes of finished steel, which is 26.6% more than last year. 

According to government data, India imported 1.96 million metric tonnes of steel from China from April to November 2024. This figure is 22.8% higher than the same period last year. China is mainly exporting products like stainless steel, hot-rolled coils, plates, electrical sheets, galvanized plain or corrugated sheets, pipes, bars and rods.

Imports also come from Japan and South Korea

Apart from China, Japan and South Korea are also playing an important role in India's steel imports. Steel imports from Japan reached a six-year high in the April-November period, amounting to 1.4 million metric tons. China, Japan and South Korea together exported 79% of India's total steel imports. Hot-rolled coil was the most imported product during this period, while bars and rods dominated the non-flat product category.

India, which is the world's second-largest crude steel producer, has become a net importer of steel for some time now. This was the case in the financial year ending March 2024, and imports have been steadily increasing thereafter. Overall, imports of finished steel have reached an eight-year high.

Consideration is being made to impose 25% duty

This has forced India's small mills to reduce operational work and layoffs. The government is also taking it seriously. India has started examining the possibility of imposing a safeguard duty of up to 25% to curb imports. The move is aimed at protecting domestic producers from cheap imports.