India’s steel sector is facing challenges as the country has become a net importer of the metal again, with the steel trade deficit hitting a 10-year high of 4.5 million tonnes in FY25. This shift is largely attributed to China flooding global and Indian markets with cheap alloys, causing imports to soar to 9.5 million tonnes, the highest since FY16, while exports dropped to a decade-low of 5 million tonnes.
The surge in imports, particularly from China and ASEAN nations, has skewed India’s domestic market dynamics and price equations, as these imports often have lower production costs compared to Indian steel. In response to concerns raised by India’s steel industry, the Directorate General of Trade Remedies (DGTR) has recommended a 12 percent safeguard duty on all imports for approximately 200 days, though an official notification is still pending.
Meanwhile, India’s steel exports have also been hit, with shipments to the EU and Middle East declining due to economic headwinds and competition from cheaper Chinese alloys. While there was a slight improvement in exports from February to March 2025, there was a substantial 46 percent year-on-year drop compared to March 2024, according to data from the Steel Ministry.