Budget 2018 leaves stainless steel industry disappointed



5 February 2018

The stainless steel industry is miffed that the Union Budget has largely overlooked its demands.

“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 deterrent for the domestic industry and put financial strain on domestic players,” Indian Stainless Steel Development Association (ISSDA), an apex body representing stainless steel industry in India said.

“Both these raw materials are not easily available within the country and the domestic players are dependent on imports. Higher input cost will continue to make the domestic players uncompetitive globally,” the industry body added.

It further said that the government should reassess its decision as this would defeat ‘Make in India’ concept and abolish the import duty on the raw materials.

Commenting on Budget 2018, K K Pahuja, president, ISSDA said: “For the past few years, Indian stainless steel industry has been ailing due to high production cost in the manufacturing of stainless steel due to the custom duties levied on key raw materials. With no relief in duty structure on ferro-nickel and stainless steel scrap, higher input cost will continue to hurt the players”.

Currently, basic customs duty of 2.5% is levied on import of ferro-nickel and stainless steel. Stainless Steel import already attracts lower basic custom duty at a rate of 7.5% against 12.5% for carbon steel and denying relief on essential raw materials is double whammy for this industry, half of which is in the MSME sector.

Source: THE ECONOMIC TIMES