MC EXCLUSIVE India not a 'dead economy,' the facts tell a different story: Naveen Jindal

India, now the world’s second largest steel producer, produces “almost double of what the USA produces,” said Jindal.

Steel tycoon Naveen Jindal has called for stronger safeguard duties to shield Indian producers from predatory imports, warning that unchecked inflows from China and via ASEAN routes could distort domestic prices.

“Safeguard duty is very important. It gives us some (kind of) level playing field,” said Jindal, Chairman of Jindal Steel and President of the Indian Steel Association.

The Indian government imposed a provisional safeguard duty of 12 percent on imports of certain non-alloy and alloy steel flat products, starting April 21, 2025, for 200 days, as part of a three-year plan to protect its domestic steel sector from surging imports, particularly from China and Vietnam. The duty is meant to level the playing field by making low-cost foreign steel less competitive, thereby supporting Indian steel manufacturers.

India, now the world’s second largest steel producer, produces “almost double of what the USA produces,” said Jindal.

“So, when people call India a “dead economy,” the facts tell a different story: in steel, we are ahead,” he added.

With India’s per capita steel consumption still at just 102 kg compared to the world average of 230 kg, he stressed that domestic consumption is bound to rise as infrastructure needs grow for a population of 1.4 billion.

Against this backdrop, Jindal argued that safeguard duties are vital for ensuring a level playing field.

“This 10%-12% protection is nothing,” he said, explaining that the Indian industry already bears heavy costs by cross-subsidising other sectors.

“In India, nobody realizes (that) we are cross subsidizing so many things. Say power tariff. You know, industry pays the highest price. Railway freight. We pay the highest to cross subsidize coal, fertilizer, and many other things. We pay the highest amount of taxes on minerals, whether it’s coal, whether it’s iron ore… up to 120–130% more than the market price.”

For Jindal, the issue is not just cost burdens but also unfair competition from foreign players.

“China, Chinese producers, they are exporting… at ridiculous prices, predatory prices. That hurts… even if we import 10% that 10% will start to determine the price for all the production in India.” He recalled that the previous downturn in steel, when several Indian companies slipped into distress, was “primarily driven by this lack of safeguards.”

Jindal also pointed to the ASEAN route as a potential backdoor for dumping.

“Certain Chinese companies have invested in Indonesia to be able to export here without any duty. So that's why the safeguard duty is very important. It gives us some level playing field.”

The steel tycoon dismissed concerns that anti-dumping duties could make Indian steel less competitive.

He argued that Indian plants are already efficient and modern:

“We are very efficient. We are as efficient as the Chinese. Our plants are very modern, much more modern than the plants in the US,” he said.

Jindal emphasised that protection is not about inefficiency but about preventing unfairly cheap imports from distorting domestic markets.

At the same time, he was candid about the limits of duties, noting that Indian producers face structural disadvantages because of input costs. Coking coal and limestone are entirely imported, while iron ore is the only major domestic raw material.

“So if iron ore is the only strength, it has to be made available. It has to be available at very attractive prices,” he said, adding that while taxes like GST are refunded on exports, royalties and premiums are not, leaving Indian producers uncompetitive internationally.

Jindal also emphasised that unlike foreign players, Indian steel companies also contribute heavily to social infrastructure.

“Which steel company in the world makes hospitals, universities, schools, roads, all the infrastructure here, townships, for people, we do all those things also and so much of CSR activities,” he said.