India, the world’s second-largest producer of crude steel, has become a net importer of finished steel for the second year in a row, according to provisional government data reviewed by a news agency.
The data reveals that the country imported 9.5 million metric tonnes of finished steel in the financial year that ended in March 2025, marking a 14.6 pc increase compared to the previous year.
In contrast, exports of finished steel saw a sharp decline of 35.1 pc, dropping to 4.9 million metric tonnes during the same period. This trade imbalance has resulted in India continuing its position as a net importer of finished steel.
In response to the rising inflow of steel products, the Indian government has proposed a temporary safeguard duty of 12 pc on selected steel items. This tax, which is expected to be in place for 200 days, is aimed at curbing the surge in imports and protecting domestic manufacturers.
Crude steel production in the financial year 2024–25 stood at 151.1 million metric tonnes, reflecting a 4.7 pc year-on-year increase. Meanwhile, the consumption of finished steel also rose to 150.2 million metric tonnes, up by 10.2 pc from the previous year.
Despite the growth in both production and consumption, the significant gap between imports and exports has raised concerns within the industry.
Government sources noted that a more detailed breakdown of country-wise trade data is expected to be released later this month.
The steel sector has been under scrutiny as policymakers seek to strike a balance between supporting domestic production and maintaining fair trade practices.
Analysts suggest that while India’s infrastructure and industrial growth have boosted steel consumption, domestic producers continue to face pricing and competitiveness challenges, especially from imports originating in countries with surplus production and lower costs.
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