Centre is addressing the concerns of domestic steel manufacturers over cheaper imports of steel products, and 'some development' in this regard is expected very soon, TV Narendran, the CEO and Managing Director of Tata Steel has said. The possibility of further dumping of steel products into India remains high, he added, given the threat of a possible US tariff on Chinese manufacturers looms large.
Speaking to CNBC-TV18, Narendran sounded hopeful of update soon, adding that India needs to manage 'manufacturing risks' that may arise out of any tariff-related action by US. President Trump's proposed tariffs on steel imports are likely to directly impact India's exports too, said Narendran, as well influence indirectly through changes in international prices.
"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," he said, noting that the issue is at what price, foreign entities are willing to sell steel.
"If we look at the profitability of the Chinese steel industry, it's pretty much negative. Most steel companies in China are losing money. But in India, the steel industry is mostly private dominated. So, unless it's profitable, it doesn't make sense for the companies to invest in new capacity," he said.
"Steel industry has been at the forefront of private sector investment. India is blessed with a lot of iron ore. This is a great opportunity to convert the iron ore to steel and boost Make in India initiative," he added.
Indian Steel Association (ISA) has already filed application with the Directorate General of Trade Remedies (DGTR) in this regard which is reviewing it.
As per official data, India's steel exports have dropped 28.9 per cent to 3.99 million tonne during the April-January period of FY25, as compared to 5.61 million tonne in the corresponding period of the preceding fiscal. India remained a net importer of steel, which stood at 8.29 million tonne during the April-January period of the current fiscal.
Speaking about US President Donald Trump's tariff threats, Narendran said Tata Steel is expected to be impacted by them directly and indirectly.
"Most countries are going to look out for themselves. So we as a country obviously need to look out for ourselves," Narendran said.
"Tata Steel also exports steel from Europe to US. So there is a direct impact from that. The indirect impact is that whatever doesn’t go to US ends up somewhere else. So this will have a bearing on international prices, and it will have a bearing on the margins in India," he said.
Narendran added that a policy is needed to address the risks that manufacturing companies will be exposed to after such tariffs are imposed.
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