India's steel export duty is a "short-term headwind", JSW Group Chairman Sajjan Jindal said, with hope that the levy will be withdrawn once inflation moderates.
"We view the export duties imposed on steel in May 2022 as a short-term headwind, since they have been imposed with the objective of controlling inflation," the industrialist said in a statement Wednesday. "We continue to engage with government on this matter and believe that the duties would be withdrawn once inflation moderates."
Jindal's statement comes days after he, along with other industry leaders, met Union Finance Minister Nirmala Sitharaman in her office.
Jindal, who also heads the World Steel Association as chairman, said India is a cost-competitive exporter of steel, and has an opportunity to take on a larger role in the global steel trade. Government continues to encourage manufacturing-led growth and merchandise exports from India, he said.
On May 21, the government had announced waiving of customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry. Also, the duty on exports of iron ore was hiked up to 50% and on a few steel intermediaries to 15%.
According to industry figures, steel exports had reached a record high of 18.3 million tonne last fiscal year.
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