India Should Cut Down Dependence On Imports For Special Steel Products

India should cut down its dependence on imports for special steel products by encouraging the domestic manufacturing of such products, noted a latest update from the Ministry of Steel. Steel is a deregulated sector and forming of joint venture for technology up-gradation is a purely commercial decision which depends on many aspects. Despite being the world’s second largest producer of steel, India is still dependent on imports of special and value added steel products and there is a need to develop domestic capabilities to produce electrical grade and auto grade steel to become self-sufficient. Government is working towards the same.
Recently, SAIL and Arcelor Mittal have firmed up their Joint Venture (JV) term sheet to enter into an agreement for setting up of a plant for production of automotive grade of steel. That should take care of one segment of imports to some extent. There has also been a tie up of Tata Steel and Thyssenkrupp (who specialize in developing electrical grade of steel), which will help for electrical steels. Steel Research & Technology Mission of India (SRTMI) has also been set-up to undertake Research & Development projects for the betterment of steel sector.
Source: Capital Market
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