India has recorded a 40% decline in steel imports for the month of May 2025 after the central government imposed a 12% safeguard duty to restrict rising steel imports from foreign countries. This decision has helped reduce the country’s dependency on imported steel and encouraged local production.
According to data, India’s steel imports were 0.70 million tonnes in May 2024, which has now come down to 0.43 million tonnes in May 2025. In April this year, steel imports stood at 0.52 million tonnes, which also dropped by May.
Imports from China alone fell by 27–30%, but imports from South Korea are still continuing. Previously, India was importing large amounts of steel from China, Vietnam, Japan, and South Korea.
The drop in imports follows a peak in January 2025, when imports had touched 0.95 million tonnes. Since then, there has been a steady monthly decline due to the safeguard duty.
India Now a Net Steel Importer: Domestic Production Increasing
India had become a net importer of steel earlier this year. However, after the safeguard duty, domestic production and consumption have seen a rise. Market prices have also seen changes:
- Hot rolled steel is currently priced at ₹52,000–₹54,000 per tonne.
- Cold rolled steel is selling at around ₹60,000 per tonne.
Industry experts believe this policy move has helped protect domestic producers and could lead to better utilization of India’s production capacity.
Stainless Steel Demand Sees Strong Growth
The Indian Stainless Steel Development Association (ISSDA) reported that demand for stainless steel in India for 2024-25 is around 48–49 lakh tonnes, showing an 8% growth over 2023-24.
India currently has an installed stainless steel production capacity of 75 lakh tonnes, but only about 60% of this capacity is being utilized.
Industry experts said that if restrictions on imports, especially from China and Vietnam are applied to stainless steel as well, domestic usage of this capacity can increase significantly.
The government is also considering the use of stainless steel in coastal infrastructure projects along India’s 11,000 km long coastline, which would further boost demand.
