India cancels anti-dumping duties on some steel products

In its 2021 fiscal budget , the Indian government announced that it would abolish anti -dumping and countervailing duties on aluminum- or galvanized alloy steel bars, strips and flat steel products , and would uniformly reduce tariffs on semi-steel, flat steel, non- alloy long products, alloys and stainless steel to 7.5%.

China is India's main steel importer. India imports a large amount of steel products from China every year. In order to protect its local manufacturing industry, India began to impose tariffs on China since 2016, and imposed anti-dumping and countervailing duties on goods exported from China to India. In June 2020, after the Sino-Indian border conflict, India once again imposed tariffs on China, greatly affecting Sino-Indian trade.

Steel products are one of the essential raw materials for production activities in all walks of life, and steel prices are one of the important factors restricting the production costs of enterprises and companies. In 2020, affected by the epidemic, India's economy was sluggish and domestic companies were hit hard. The recent sharp rise in steel prices has made it more difficult for domestic companies in India to survive.

In order to reduce the production costs of domestic enterprises and promote the recovery of the domestic economy, India has canceled the anti-dumping and countervailing duties on some steel products and reduced the import tariffs on steel products. These measures will make China the biggest beneficiary. As India's main steel importer, China will once again export large quantities of steel products to India, and the steel trade between China and India will prosper in the short term.

However, the Indian government's approach has greatly dissatisfied domestic steel manufacturers. Canceling anti-dumping and countervailing duties and lowering tariffs will cause a sharp drop in the prices of Chinese steel products, and India's domestic steel products will face strong competition. Therefore, India's domestic steel manufacturers have jointly protested. If this protest continues and becomes more intense, it may affect the government's decision-making, and the Indian government may consider readjusting tariffs.

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