Why Govt Wants to Protect Indian Steel Giants Amid Trump and China Threats

The Modi government is considering imposing anti-dumping duties on steel imports to safeguard Indian companies, according to Tata Steel CEO and Managing Director T.V. Narendran. Indian steelmakers fear that U.S. President Donald Trump’s 25% tariff on steel imports could lead global producers to dump their excess supply in India. 

Speaking to CNBC-TV18, Narendran said that the government may soon issue an update regarding the duties following the steel industry's plea. 

The Indian Steel Association, led by Jindal Steel Chairman Naveen Jindal, has filed an application with the Directorate General of Trade Remedies (DGTR). 

"Indian steel prices are very competitive. India is one of the best places in the world to produce steel, and the Indian steel industry has built very modern and efficient steel plants," Narendran told CNBC-TV18. He also highlighted that US tariffs would directly and indirectly impact Tata Steel. 

"Most countries are going to look out for themselves. So we, as a country, obviously need to look out for ourselves," he added. 

What Worries Indian Steelmakers? 

After President Trump signed an executive order imposing tariffs on steel and aluminum on February 11, the Indian Steel Association issued a warning. 

"This latest tariff is expected to slash steel exports to the U.S. by 85%, creating a massive surplus that will likely flood India—one of the few major markets without trade restrictions presently," said industry body President Naveen Jindal in a letter.

According to a recent HDFC Securities report, India’s steel sector has been growing at a solid pace, consistently outpacing other major economies. It has delivered double-digit growth in recent years, in contrast to demand contraction across most global markets. However, the report noted that falling steel prices have dragged down the sector’s profitability since FY23. 

Analysts say that not just India, but global steelmakers have been suffering due to an oversupply of cheap Chinese steel. Chinese steel is reportedly priced $25 to $50 per metric ton lower than other global producers. 

The Indian steel industry is concerned that, not only Chinese steel, other global producers may begin rerouting their surplus to India, especially as the U.S.—the world’s largest steel importer—curbs its own shipments.