According to the Indian Stainless Steel Development Association (ISSDA), the demands of the stainless steel industry have been neglected in the union budget.
The decision of the government to continue levying import duty on ferro-nickel and stainless steel scrap, key raw materials used in manufacturing stainless steel, will act as a deterrent for the domestic industry and put financial strain on domestic players. It is pertinent to note that both these raw materials are scarce within the country and the domestic players are dependent on imports only for their availability. Higher input cost will continue to make the domestic players uncompetitive globally.
ISSDA said, the government should reassess its decision as this would defeat the ‘Make in India’ concept, and abolish the import duty on the raw materials. Currently, basic customs duty of 2.5% is levied on import of ferro-nickel and stainless steel. Stainless Steel imports already attract a lower basic custom duty of7.5% against 12,5% for carbon steel and denying relief on essential raw materials is seen as a double whammy for this industry, half of which is in the MSME sector.
