Industry expressed concern over dumping of Chinese steel in India, said- FTA should be reviewed

Figures related to India's import-export for August 2024 received a mixed reaction from the market. PHD Chamber of Commerce and Industry showed praise for India's resilience in exports. The overall increase, as per the Chamber, was a 5.3 percent year-on-year growth in total exports during April-August 2024. The total value of the export of goods and services during the period increased to USD 374.3 billion as compared to USD 350.1 billion recorded during the corresponding period in 2023.

The PHDCCI President, Sanjeev Aggarwal, attributed the growth to an increase in the shipment of electronic goods, tea, coffee, spices, and cereals. He fancies that with supply chains strengthening further in India, the growth of exports is likely to continue strong. "We expect robust export growth in the current financial year. As supply chains strengthen further in India, exports are also expected to grow in the current fiscal year," said Aggarwal.

However, the Federation of Indian Export Organizations presented a cautious outlook with August merchandise export data. Consequently, the country's August fell over more than 9 percent year-on-year to USD 34.71 billion.

FIEO President Ashwani Kumar ascribed the sharp decline to global economic uncertainties, falling commodity prices, and logistical issues.

He also pointed out that international trade disruptions, as well as a drop in crude oil and metal prices, have hurt merchandise exports. Besides, high freight costs and shipping difficulties have forced some exporters to focus on domestic markets. "The fall in prices of crude oil and metal as well as disruption in international trade has also contributed significantly in bringing down the value of exports," Kumar said.

The received data was optimistic from the engineering sector. Engineering Export Promotion Council (EEPC) India chairman Arun Kumar Garodia informed that engineering exports in August 2024 registered a growth of 4.36 percent, reaching US$ 9.44 billion. Overall, engineering goods exports for the April-August period stood at US$ 46.41 billion, registering a growth of 4.22 percent year-on-year. Garodia, however, added that the overall performance could have been even stronger but for the decline in iron and steel exports due to aggressive pricing by China, geopolitical conflicts, and protectionist policies in the US and the EU.

He said cheap Chinese steel is being dumped in India taking advantage of FTAs, raising concerns among the country's traders. He also urged a review of free trade agreements (FTAs) to address concerns over the entry of Chinese steel into India through FTA routes. According to industry experts, the way forward for India's export sector depends on both global market conditions and domestic policy interventions.