Facing U.S. tariffs, Indian stainless steel producers pivot to a booming domestic market fueled by infrastructure growth and sustainability demand.
Due to U.S. tariffs, Indian stainless steel companies are now concentrating on the expanding domestic market in order to absorb production that was originally intended for sale to the United States. The action is taken in the wake of the United States’ decision to put a 25% tax on imports of steel and aluminium, which has left international trade dynamics muddled and unpredictable.
The main tariff announcement is still in effect even though U.S. President Donald Trump has put a 90-day temporary halt to a reciprocal tariff action. Indian exporters are now looking for alternatives as a result of the significant inconvenience this has caused.
In an interview, Rajputana Stainless Ltd. CEO Yash Mehta stated, “The tariff has had a massive impact on our company and the industry as a whole.” Because everything is changing so drastically every day, there is no clarity. Suppliers and customers are perplexed. The global steel trade has changed as a result of this.
Stakeholders in the industry are getting ready to discuss these topics in the June 2025 Global Stainless Steel Expo (GSSE) Summit. Many people think that the U.S. market won’t “die immediately” in spite of the taxes because the country doesn’t have enough local capacity to meet its needs for stainless steel consumption.
Some businesses, however, are mostly untouched. Avtar Steel Ltd.’s Director of Operations, Nitin Garg, said his company, which produces 6,000 tonnes per month, has not been affected because it does not export to the United States.
When the United States tried to implement safeguard duties a few years ago, we adjusted. We prioritised customisation, which is frequently unmatched by Chinese manufacturers. We are also benefiting from the Indian government’s efforts to promote homegrown materials,” he added. An important buffer is being provided by the rising domestic demand. Due to the growing demand for long-lasting and ecological materials, stainless steel is being utilised more and more in the processing, infrastructure, and railroad sectors.
“There is undoubtedly an increase in demand for stainless steel,” stated C.P. Mangal, Director of Mangalam Worldwide Ltd. Projects from the public and private sectors are increasing consumption. Furthermore, high-value stainless steel products are unaffected by the recently implemented safeguard taxes on steel products.
The Stainless Steel Development Association estimates that by FY 2030, India’s per capita consumption of stainless steel, which was 3.1 kg in FY 2024, will rise to 4.5 to 5.5 kg. It is anticipated that local manufacturers will meet a sizable amount of domestic demand that is currently satisfied by imports, which would be a beneficial development for the sector.
