India's Ministry of Steel has requested the Ministry of Commerce and Industry to investigate the influx of cheaper steel imports from Vietnam and China. A government source indicated that the trade ministry should analyze these imports and provide recommendations to the finance ministry for a final decision.

In the fiscal year ending March 2024, India became a net importer of finished steel, with imports increasing by 38.2% year-on-year to 8.32 million tonnes. Exports also rose by 11.5% to 7.487 million tonnes. The trend continued into the first fiscal quarter ending June 2024, where imports surged by 29.5% to 1.86 million tonnes, while exports increased by 37.7% to 1.28 million tonnes, according to provisional data from the Joint Planning Committee (JPC).

Discussions regarding rising imports have been ongoing, with the steel and commerce ministries reportedly in talks since early July about the impact of low-priced steel from China. Some market participants suggest that import measures may be necessary due to the increase in imports, while others caution that direct protectionist measures could harm downstream sectors.

Vietnam's Ministry of Industry and Trade recently initiated an anti-dumping investigation into hot rolled coils from China and India, further complicating the situation. Indian steel ministry secretary Nagendra Nath Sinha noted that steel imports account for only 5% of domestic consumption but acknowledged complaints regarding Vietnam-origin hot rolled coils.

Additionally, the Indian steel ministry has urged EU officials not to impose higher taxes on carbon-producing sectors, rejecting a proposal related to the Carbon Border Adjustment Mechanism (CBAM). Indian economic affairs secretary Ajay Seth emphasized that the EU's suggestions are impractical for a developing economy like India.

The steel ministry is also exploring options to diversify coking coal imports from various countries, as Indian mills rely heavily on imports for their coking coal needs.