This post was originally published on The Economic Times
India’s MSMEs are facing a challenge due to the overwhelming influx of cheap Chinese goods. To counter this threat, experts and industry stakeholders are urging the government to introduce innovative investment and incentive schemes in the upcoming budget, specifically designed to empower and protect MSMEs. The steel industry, in particular, is facing a big crisis. India has transitioned into a net steel importer, with imports surging since March 2024. The flood of cheap Chinese steel has severely impacted smaller Indian mills, forcing them to reduce operations and consider layoffs, say experts.On December 18, Union Minister of Heavy Industries, H D Kumaraswamy, in response to a Lok Sabha question, said steel imports from China rose by 80% to 16.1 lakh tonnes between January and July in 2024, against 9 lakh tonnes during the same period last year. The Minister also highlighted that imports have been increasing over the past three years. The imports of finished steel rose from 4.67 million tonnes in 2021-22 to 8.32 million tonnes in 2023-24, the official data showed.
In an effort to curb the influx of cheap steel, the government is
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