SIMS Impacts Indian Steel Industry to Reshape Global Economies

Role of India’s Steel Sector in Redefining Global Economy?

Steel being an integral part of modern infrastructure development, plays a key role in manufacturing daily appliances.?

Be it the automobile sector, construction and roadwork, aviation, or shipping industry, India’s steel industry has impacted global economies tremendously in the last few years. The Steel Import Monitoring System or SIMS Registration plays a major role in helping the Indian steel industry to reshape the dynamics of the global economy.?

According to the Ministry of Steel , the National Steel Policy 2017 turned out successful in certain ways. Some of those are discussed below-?

• The per capita consumption of steel has increased from 59 kg in 2013-14 to 69 kg in 2017-18?
• India produced steel of around 103 million tons in 2017-18 and has been consistently increasing the scale of steel production
• Stringent measures to restrict cheap and substandard quality of steel production?
• Mandating SIMS registration on steel products to facilitate high-quality domestic steel production in the country?

Key Role Played by SIMS To Secure India’s Steel Import?

The primary aim of SIMS registration is to curb the instances of substandard production and import of steel products. It aims to facilitate the import, production and sale of high-quality steel materials only by establishing some of the regulations shared below –?

1. Introducing 8-digit HS Codes to identify 524 different steel tariff lines under the Steel Import Monitoring System.?
2. Mentioning a detailed list of 524 products along with their HS-Code wise definition on SIMS registration portal
3. Promoting fair trade practices to facilitate steel import trade between India and foreign countries?
4. Empowering domestic steel products to determine fair market value by eliminating the instances of dumping low-priced steel imported from foreign countries
5. Introducing anti-dumping duties to resist cheap steel scraps being dumped into the Indian market, by making it less competitive
6. Mandating transparency and accountability for import of every steel item by adhering to Ministry of Steel’s Import guidelines.?

Role of Indian Steel Sector in Regulating Global Economies

The SIMS regulations mandated by the Ministry of Steel have made a major contribution to push the Indian steel industry to redefine global economies in various ways. A few pivotal impacts of the Indian steel sector on the global economy have been listed below-?

Aligning India’s Steel Consumption with Global GDP?

The global steel consumption of Indian steel for the last 30 years have escalated by 3.6% growth in global GDP. It has also accelerated 3.6% growth in all total steel consumption in India. The GDP of India grew annually by 6% from 1990 to 2018 in the country and has sufficiently increased since then.?

India’s Steel Market has a Huge Fortune Ahead-?

India’s steel market is the world’s third largest seller of finished steel products. Countries like the US, China are the biggest consumers in this market. It somehow gives a positive message to the global steel buyers to enhance industrialization and urbanization by using this scope.?

Steel industry’s economic impact in India?

The steel industry plays pivotal role in contributing 2% of the country’s GDP by assuring employment scope to 25 lakh people in the steel and allied industrial sector. By 2018, India’s crude steel consumption has increased from 22 million tons to 105 million tons easily.??

Sustainable Infrastructure driven Growth??

?The demand for steel products in India is way affordable compared to other countries in various ways. Indian steel import policies under National Steel Policy (NSP) aim to boost domestic production and reduce imports by fostering growth for Indian steel companies.?

Conclusion?

The National Steel Policy launched by the Ministry of Steel in 2017, has facilitated the Indian Steel industry in various ways by aligning with SIMS Registration in India. Stay tuned with us for such informative updates of Indian Steel Industry