India’s steel imports have increasingly become concentrated over the past decade, with a few key supplier nations dominating shipments. Experts attribute this trend to evolving trade policies, shifting global supply chains, and India's growing demand for high-quality specialty steel.
Rising Dependence on Key Suppliers
According to industry data, countries such as China, Japan, and South Korea now account for a significant portion of India's steel imports. In FY24, imports from these nations made up over 70% of total inbound shipments, up from around 55% a decade ago. The surge is largely driven by India's reliance on advanced grades of steel, which are not readily available in domestic production.
Policy & Trade Shifts
- The India-Japan and India-South Korea free trade agreements (FTAs) have played a major role in shaping import patterns, allowing duty-free steel imports.
- The imposition of tariffs and safeguard measures on certain non-FTA countries has further concentrated imports among a few preferred suppliers.
- Growing domestic demand for electrical and automotive-grade steel has led to increased procurement from technologically advanced steelmakers overseas.
Outlook: Balancing Imports & Domestic Production
The Indian government is actively working on policies to reduce import dependence by promoting domestic production of specialized steel under the Production-Linked Incentive (PLI) scheme. However, until local mills scale up production of high-end steel, imports from a select few nations are expected to remain high.
