Make best use of trading agreements with developed countries, says Minister
Commerce and Industry Minister Piyush Goyal has urged the steel industry to make best use of the India-Australia Economic Cooperation & Trade Agreement (ECTA) and look at capturing new opportunities in Australia.
Addressing the 3rd edition of ISA Steel Conclave in New Delhi on 22 Nov 2022, he highlighted that post agreement with Australia all Indian steel exports to Australia will become duty free.
He urged Industry to make best use of the trading agreements with developed countries which will usher in new opportunities for Indian youth and businesses across sectors.
“Developed countries recognise that the Indian economy will drive world growth.”
Goyal stated that steel industry is the major stakeholder, contributing significantly to the export earnings, and there are many Indian steel companies among the world’s top class steel suppliers.
High Quality products like engines, valves made from Indian steel are testimony to quality steel that the steel industry is producing, he noted.
Goyal called on the industry to strive to develop ‘Brand India’ and observed that the steel industry is the low hanging fruit in India’s integrated efforts to create global recognition of Indian products.
The Minister applauded and thanked the industry for immense contribution through manufacturing essential equipment required to make medical devices, supplying liquid medical oxygen for covid treatment among others.
Many steel mills even curtailed production in order to prioritise liquid medical oxygen, noted Goyal.
He also called on them to ramp production and achieve the target of 300 million tonnes by 2030.
“With large investments coming in future, the industry will continue to prosper and grow,” underlined Goyal.
While many large producers of steel in other countries are facing severe stress, India has a huge opportunity in terms of large domestic market, cost competitiveness, modern tech, wide range of products and domestic iron ore, he said.
The Government is working with other countries to explore more market opportunities for the Indian manufacturers, particularly those industries which are competitive, have high quality standards and are globally relevant, he assured.
The National Steel Policy 2017 has helped India become the second largest producer of steel, he added.
He opined that the Indian steel industry will continue to have an edge in the international market with the removal of duties on steel exports.
Noting that availability of coking coal is a major challenge for the industry, he urged stakeholders to collaborate with eminent institutions and undertake research to find alternate solutions for this.
He emphasised the need for not being dependent on a few countries for coking coal and explore new ways of becoming self-sufficient.
Goyal noted that India’s per capita consumption of steel is much below the world average and urged the industry to aspire for at least 3X growth to reach the global average.
The rising EV auto market coupled with increasing levels of prosperity will translate into potential business for the steel and aluminium industry, said the Minister, calling on them to kickstart the process of investment and aid in faster rollout of Productivity Linked Incentives scheme in the steel sector.
Goyal advised the industry to undertake collective research in the area of sustainability to reduce carbon footprint. “This will also help Indian steel to get a priority over other countries and capture bigger markets and get better value for sustainable steel.”
He also urged the industry captains to deliberate and work out a mechanism to support small manufacturers and ensure that withdrawal of export duties on steel do not hurt small manufacturers.
He also exhorted them to continue supporting MSME Industry and exporters of engineering products. fiinews.com
