Reuters reported on September 11 that the Indian Ministry of Finance issued an order on the 10th and decided to impose tariffs ranging from 12% to 30% on stainless steel welded pipes produced in China and Vietnam for a period of five years. According to previous reports by The Hindu, in fiscal year 2024 (April 1, 2023 to March 31, 2024), India imported nearly 2.7 million tons of steel products from China, accounting for 1/3 of India’s imported steel products. With a growth of 91%, China has become India’s largest source of steel products.

India's "Business Standard" recently reported that due to the surge in imported steel, Indian steel companies have been calling on the government to intervene and increase import tariffs, but the Indian Steel Ministry has refused on the grounds of strong local demand. According to India's "Financial Express" report, India's Minister of Steel Coomaraswamy recently made it clear that he is trying to persuade the Indian Ministry of Finance to increase steel import tariffs from 7.5% to 10% to 12%.

Regarding the Indian government's tax increase measures, India's "Business Standard" published an editorial on the 11th, saying that the decline in China's steel prices has put pressure on India's expansion plans. Currently, Indian steel manufacturers are seeking tariff protection. The government should support the industry and avoid seeking tariff protection. Make a balance between renting behavior.

The U.S. Consumer News and Business Channel reported on the 11th that after the Indian Ministry of Commerce and Industry’s Trade Remedy Administration conducted an anti-dumping investigation, the Indian government increased taxes to protect local companies, and the tax increases are expected to affect the Indian steel industry. Due to reduced competition, Tata Steel and other Indian steelmakers may benefit from this.

At the same time, the Indian government is also discussing the possibility of relaxing restrictions on Chinese investment. The Hindu reported on the 11th that India is considering allowing investments from companies with no more than 10% Chinese investment without prior review by the Indian government. This will help companies that have supply chain partnerships with Chinese companies. It is easier for global companies to invest in India.

As for the Indian government’s move to increase taxes on steel products from China while at the same time announcing that it will relax restrictions on Chinese investment, Zhang Jiadong, director of the South Asia Research Center at Fudan University, told a reporter from the Global Times on the 12th that these two policies seem contradictory, but in fact But it serves the same goal - to develop India's manufacturing industry. Zhang Jiadong said: "The fundamental problem is that India's steel industry lacks international competitiveness, which leads to a lack of motivation for enterprises to advance in technology and strengthen management. India's labor prices are lower than those in China, but China's steel products are more competitive, while Indian steel companies The equipment, technology and management capabilities are relatively low.”