Budget 2024: The steel industry has big expectations from the interim budget, Jindal Steel MD Abhyudaya Jindal said this to the government.
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Budget 2024: The last financial budget of this term is to be presented by the Central Government on February 1. Finance Minister Nirmala Sitharaman will present the budget for the sixth time. This budget will account for the expenses till the swearing-in of the next government. This is called interim budget. After this, then the full budget will come. Not only the common people but also the industrialists have a lot of expectations from this budget. Steel Industry Jindal Stainless Limited (JSL) Managing Director Abhyudaya Jindal (Abhyuday Jindal) has also given his opinion regarding the general budget. He has urged the government that import duty on raw materials should be removed in the upcoming budget. Abhyudaya Jindal said that with this measure, equal opportunities will be available to domestic companies also. He said that the domestic industry is being affected by cheap and poor quality stainless steel products imported from select countries like China and Vietnam. In such a situation, he has suggested imposing Basic Customs Duty (BCD) on imports.
Serious pressure on MSME
Abhyudaya Jindal said that a long standing need of the stainless steel industry is for some raw materials which are not available in the country. These include ferro nickel and ferro molybdenum. At present, there is an import duty of 2.5 percent on ferro nickel and five percent on ferro molybdenum. On his budget expectations, JSL Managing Director said that there is dumping of these products from China, Vietnam and some countries with which India has Free Trade Agreement (FTA). He said that this is putting serious pressure on micro, small and medium enterprises (MSME). This is also preventing the stainless steel industry from becoming self-reliant. He said an investigation was conducted by the Directorate General of Trade Remedies (DGTR). One way out is that we definitely need some kind of ‘protectionist’ measure. Our request is that some kind of duty should be imposed to provide security to the stainless steel companies in India.
19 percent tax on some grades of stainless steel
Jindal Stainless Limited (JSW) Managing Director Abhyudaya Jindal said the DGTR has also recommended imposing duty of up to 19 per cent on certain grades of stainless steel being dumped in the Indian market. DGTR – is the investigation arm of the Ministry of Commerce, which deals with matters related to anti-dumping duty, safeguard duty and countervailing duty. He said that these tariffs are trade remedy measures, which are provided to its member countries under an agreement of the World Trade Organization (WTO). He said that the government had earlier removed import duty (2.5 percent) on some raw materials like pure nickel and stainless steel scrap.
Demand for stainless steel increased in India
Giving his opinion on the general budget, Abhyudal Jindal said that the industry requests the government to continue this decision. On the impact of imports, Jindal said that it is making it very difficult for the MSMEs of the region to compete. Now they are either becoming businessmen or exiting the industry completely. The demand for stainless steel in India is increasing at the rate of 8-9 percent annually. Jindal said that the industry has an opportunity to grow continuously for the next 10-12 years. However, he also said that if protectionist steps are not taken, imports will continue to take advantage of this opportunity.
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