India's MSMEs to get portal for procurement to counter safeguard duties
India to launch MSME steel procurement portal before imposing 14-25% safeguard duties to counter rising imports and protect domestic industry
Chennai: The government is planning to open a portal for the MSMEs for procurement of steel and steel products at international rates before introducing safeguard duties on the metal.
As the tariff war by the US has set in, the global steel market is expecting a glut and India anticipates that part of the glut will be directed to countries other than the US. The government has been investigating the need to impose safeguard duties on steel imports. This is a temporary tariff imposed to shield domestic industries from a sudden increase in imports from countries, including those with which India has free trade agreements such as Japan, South Korea, and China.
“We expect the government to impose safeguard duties between 14 to 25 per cent on select steel products soon. The duties will increase the domestic prices of steel and the micro, small and medium enterprises have been insisting on making steel available for them at international rates,” said Pankaj Chadha, Chairman, Engineering Export Promotion Council.
In order to address the challenges of MSMEs, the government plans to set up a portal. The MSMEs can record their requirements of steel on the portal and the government will make steel available at international rates.
MSMEs account for almost 50 per cent of the exports to the US. The country exports around $7 billion worth steel, aluminium and their products to the US.
Meanwhile, EEPC expects the new tariffs to affect 60 per cent of the steel exports to the US and around 30 per cent of the aluminium exports, which were subject to exclusions under the previous tariffs.
“The US imports 25 per cent of its steel and 75 per cent of its aluminium consumption. It is not possible for the country to replace the demand with internal production immediately. There could be some drop in demand. But the US will also buy from countries which are able to provide a better deal. It is in talks with several countries, including Canada, Mexico, European Union and India,” he said.
