India remained a net importer of steel during April-November after exports dropped over 30 per cent.Carmakers continue to rely on imports because they say local steel companies are unable to match the quality, consistency and price, three company sources said.Carmakers continue to rely on imports because they say local steel companies are unable to match the quality.Despite the warning from the auto industry, the steel ministry is unlikely to back down, three sources with direct knowledge of the matter told Reuters.The steel ministry has already granted a two-month exemption to carmakers on new quality control rules for imports which were originally due to come into effect on Dec 18.India remained a net importer of steel during April-November after exports dropped over 30 per cent.
The auto industry will, however, face disruption if the import of some of these crucial steel products comes to a standstill, Vinnie Mehta, director general at the Automotive Component Manufacturers Association of India, told Reuters.The letter and the internal discussions at the steel ministry have not been previously reported.IMPORTS RISEThe steel ministry’s push is the latest from Modi’s administration which is desperate to check imports and show the success of its manufacturing programme, aimed at building a domestic industrial base and boosting jobs and growth.India’s auto industry, which includes companies such as Maruti Suzuki, Hyundai Motor Co, Honda Motor Co and Ford Motor Co, is staring at production stoppages if new tougher rules on steel imports are not relaxed, a federal minister warned in a letter.There are fears that other carmakers will do the same, which will hurt local manufacturing China din571 hexagonal wood screw stainless steel factory and jobs, he said.
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