New Delhi: CII’s new president Naushad Forbes on Wednesday warned that a long-term restriction on steel imports will have a negative impact on the economy.
The government in February imposed a minimum import price (MIP) on 173 steel products ranging between $341 to $752 per tonne. The minimum price will remain in place for six months only.
In March, the government has extended the safeguard duty on some steel imports till March 2018, to protect domestic industry from cheaper supplies from China, amid a global glut. “If we see them as short term measures to prevent a flood of imports as a result of global supply glut, then it is okay. But if you see it as something which is going to be around for long-term, then it is a problem for the economy,” said Mr Forbes.
He said that any long term restriction means one is feeding higher cost to all the using sectors and a commodity like steel gets used by a very wide spread of industries. “Adding a tariff only raises raw material costs and makes those other industries less competitive,” said the new CII president.
