Comprehensive Guide of the Mission to Electro-Galvanised Steel Production
Electro-galvanized steel has become a need of every country. It has lots of benefits that attract a variety of industries of developing countries to use in day-to-day life to mitigate the rusting effect in their products. However, in India scenario is different where production of steel has high, but manufacturing of electro-galvanized steel is equal to nothing.
That is why India is importing electro-galvanized steel from some neighboring countries. Such countries sell the steel at a subsided rate to India; we understand this as dumping. Indian domestic steel industries do not match this lowered price, so they do not compete with foreign countries. To know more about this, we read this article. In this article, we clear a comprehensive guide of the mission to electro-galvanized steel production and some related aspects.
Statistics of Steel Production and Import in India
India’s total capacity of production of steel stands at 75 million tonnes, and the import of electro-galvanized steel of 10 lakh tonnes every year.
To analyze the above data, Dr. Shubh Gautam said that India needs to cut down on importing electro-galvanized steel because India is already self-sufficient in the production of crude steel.
What is the scenario to probe electro-galvanized steel dumping?
To see this situation Chief Technical Architect of American Precoat Speciality Limited, Dr. Shubh Gautam filed and wrote an application against the dumping last year. He wanted to follow our Prime Minister’s mission, Vocal for Local, to make resilient India in manufacturing electro-galvanized steel. So for this, he said India had to reduce imports from foreign countries to support domestic industries.
To his petition, the Directorate General of Trade Remedies permitted to American Precoat Company for probe on dumping of electro-galvanized steel by foreign governments like Korea, Japan, and Singapore.
American Precoat Speciality Limited is a Noida-based company working on industrial coating, polymer, and many more since 2005. It has patented the products, including closure caps for containers and liners for plastic enclosures. Now it has established its electro-galvanized steel plant in Valsad, Gujarat.
What exactly is Electro-Galvanised Steel?
We insert a zinc metal electrode in an electrolyte solution and then dip steel into the same electrolyte solution.
After that, we pass current on the solution to reduce the zinc ion from the zinc electrode to the steel. These zinc ions are uniformly distributed over the surface of the steel that making it corrosion resistant. When the process is complete, the steel we have created recognizes as electro-galvanized steel.
How can electro-galvanized steel dumping affect India’s market?
Foreign countries mitigate the excessiveness of electro-galvanized steel by selling it in subsidizing cost in the Indian territory. We know this procedure as dumping. The same cost reduction is not possible for the domestic industries of India because they cannot manufacture the steel at the exact cost as foreign enterprises produce the steel.
So they sell electro-galvanized steel is at a higher price than the steel of foreign companies. Indian traders buy only electro-galvanized steel that is cheap in the Indian market. Owing to the above reasons, Indian domestic enterprises do not survive a long race to compete with foreign ones in terms of price and quality.
How can India prevent the dumping of electro-galvanized steel?
According to the American Precoat company, India can prevent the dumping of electro-galvanized steel by this.
● If India wants to save its domestic manufacturing industries, India should impose a protectionist tariff. This tariff would help in making fair market prices for international business transactions. Due to this, balanced trade will establish and help set up domestic industries.
● The World Trade Organisation made a policy to counter against importing at cheap cost by imposing duties. India can file a case against foreign enterprises for dumping electro-galvanized steel because this violates the international trade policy.
How can the localization of electro-galvanized steel be beneficial for India in the future?
Dr. Shubh Gautam said the localization of electro-galvanized steel promotes domestic manufacturing enterprises. This thing assists in achieving the target of Made in India and Self Resilient.
He said that India produces 75 million steel per month and 10 lakh tonnes of electro-galvanized steel per month. If India can manufacture electro-galvanized steel, it saves the cost of importing and earns huge money by importing this steel to foreign countries.
According to American Precoat, India can boost its various sectors such as defense, automobile, construction, and infrastructure by localizing the electro-galvanized steel.
What are the reasons to probe electro-galvanized steel dumping?
These are some reasons to probe electro-galvanized steel dumping given by American Precoat.
● To protect small and medium-sized industries of India from the dumping of electro-galvanized steel.
● Promote Vocal for Local so that India will be self resilient. It means India cut the cost of importing steel.
● Draw the attention of domestic original equipment manufacturers towards the importance of electro-galvanized steel for our country.
● Make India exporter of electro-galvanized steel to foreign countries by fully utilizing crude steel.
From wrapping the above information, we can say that If India wants to become self resilient, it should support the domestic industries. India is already self-sufficient in crude steel production, so it does not have any issue producing electro-galvanized steel. To do this, we need to promote domestic enterprises by applying a protectionist tariff on dumping steel by foreign countries.