Indian stainless steel exports are on the rise but they are yet to make a dent on the global map. What are the deterrents in this growth? Read on to know more.
India’s stainless steel industry has witnessed substantial growth, becoming one of the leading producers globally. However, the fluctuating landscape of global trade policies significantly impacts its export dynamics.
One of the primary challenges for India’s stainless steel exporters is the imposition of tariffs and trade barriers by importing countries. These measures, often introduced to protect domestic industries, can hinder the competitiveness of Indian products. For instance, the United States and the European Union have implemented anti-dumping duties on stainless steel imports from India, escalating costs and reducing market share for Indian exporters.
On the flip side, Free Trade Agreements (FTA) present opportunities for growth. India’s engagement in FTA with countries like Japan, South Korea and the ASEAN region has facilitated smoother trade flows and reduced tariffs. These agreements enable Indian stainless steel producers to access new markets with competitive pricing, boosting export volumes.
Geopolitical conditions
Geopolitical tensions also play a crucial role in shaping trade policies. The ongoing trade war between the US and China has created a ripple effect across global markets. India, in this scenario, stands to benefit as countries seek alternative suppliers to China. This shift can potentially open new avenues for Indian stainless steel exports, provided the country can meet the quality and volume demands.
Compliance with international standards
Adherence to international standards and certifications is another critical factor. Exporters must comply with stringent quality and environmental regulations imposed by importing countries. Meeting these standards not only ensures market access but also enhances the reputation of Indian stainless steel in the global market.
Global trade policies are a double-edged sword for India’s stainless steel industry. While tariffs and trade barriers pose significant challenges, FTAs and shifts in geopolitical landscapes offer promising opportunities. Navigating these complexities requires strategic planning and adherence to international standards, enabling Indian exporters to strengthen their foothold in the global market.
