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19 September 2018
 |
| Steel
(The Total Investment & Insurance Solutions) |
India`s
steel ministry has proposed increasing the effective import duty on some steel
products to 15 percent from current rates ranging from 5 percent to 12.5
percent, according to two sources and a government document reviewed by
Reuters, as the country looks to support the rupee.
The
proposal, which is part of a broader government plan to cut
"non-necessary" imports to stop an outflow of dollars that has sent
the rupee to record lows, will be discussed in the trade ministry on Wednesday,
according to one of the sources involved in the matter.
"The
broader message is to address the trade balance but we will try to promote
`Make in India` by encouraging domestic (steel) production," said the
source, who declined to be named ahead of a possible decision.
The
source said there was no certainty that the proposed duty would be imposed.
The
steel and trade ministries did not immediately respond to requests seeking
comment.
In
the three months to end-June, India became a net steel importer for the first
time in two years, with foreign supplies reaching 2.1 million tonnes, up 15
percent from a year earlier, according to official data.
In
the 2017/18 financial year to end-March, the country imported 8.4 million
tonnes of steel, 45 percent of which came from Japan and South Korea with which
India has free trade agreements.
The
proposed duties may not apply to imports from the North Asian countries, but
other steel suppliers such as China, South Africa, Malaysia, Russia and
Indonesia could be affected.
Apart
from steel, India is considering raising import duties on some farm
commodities, potentially for a few months, although it is wary of the risks of
retaliation, said a senior government official with knowledge of
inter-ministerial deliberations on proposed restrictions.
The
government is also looking at curbs on imports of gold and high-end electronic
items, a trade ministry source said last week.
India
is the world`s second biggest gold buyer, and its imports in August rose more
than 90 percent to $3.64 billion.The Total
Investment & Insurance Solutions
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