MUMBAI: In a significant development for India’s engineering MSME exporters, industry leaders have voiced concerns over the proposed imposition of an additional safeguard duty on steel imports. According to S C Ralhan, Chairman of the Hand Tool Association, the decision could severely affect the competitiveness of domestic products, thereby hampering export potential from the MSME sector.
MSME engineering exporters are already grappling with challenges such as high domestic steel prices and liquidity issues. The cost of steel has seen a steady rise due to increasing prices by domestic steel manufacturers, further squeezing the margins of small and medium enterprises (SMEs). Ralhan stated, “With the proposed 25% safeguard duty on steel imports, MSME exporters are at risk of facing higher input costs, which will make it difficult for us to compete in international markets.”
The engineering sector plays a crucial role in India’s export landscape, and the added burden of higher steel prices could result in a decline in competitiveness, potentially leading to reduced shipments. MSMEs are already struggling to maintain profitability due to volatile raw material prices, and an additional duty could be the tipping point that adversely affects their operations and global trade.
Exporters are urging the government to reconsider this proposal, emphasizing the need for policies that support the growth of MSMEs and ensure their continued participation in international trade.
Source: Web Team, C6N
