Ahead of FY27 Budget, Seamless Tube Manufacturers Seek Production-Linked Sops on Exports

Ahead of the Union Budget, the Seamless Tube Manufacturers' Association of India (STMAI) has urged the government to introduce a production-linked incentive (PLI) scheme for at least 10% of their products' exports.

Such incentives will accelerate India's export growth in this sector, the association said, highlighting that Indian manufacturers produce high-quality seamless pipes tailored for domestic needs, while actively exploring new markets abroad.

STMAI President Shiv Kumar Singhal also stressed the need for stringent measures to curb illegal imports of seamless pipes, which are adversely impacting domestic producers.

He called for an increase in customs duty on such imports from the existing 10% to 20% in the upcoming annual budget to protect the domestic industry.

These concerns, he said, were raised during a meeting with the steel ministry, and the association is hopeful that these issues will be addressed in the forthcoming budget.

STMAI represents domestic producers of seamless pipes and tubes.

India is emerging as a significant player in the global seamless pipe export market. In 2023, the country exported 172,000 tonnes of seamless steel pipes worth $606 million. These pipes, categorised under HS code 7304, primarily serve sectors like oil and gas, engineering, and infrastructure.

Major export destinations include the United States, Italy, Canada, Spain, and the United Arab Emirates.