In the wake of the United States imposing a 50% tariff on steel imports, questions have arisen regarding the implications for Indian steelmakers. Our Correspondent sought insights from Ravish Sharma, CEO of ESL Steel Limited (Vedanta), to understand how the policy could influence the company’s operations, domestic demand absorption, global competitiveness, and market strategy.
Ravish Sharma’s perspective on how the industry is navigating this challenge:
Q: What is the impact on ESL Steel Limited?
A: ESL Steel has minimal direct exposure to the US market, so the immediate impact is limited. However, we are closely monitoring global price trends and trade dynamics.
Q: Can domestic demand absorb the potential oversupply?
A: Yes. India’s domestic market is well-positioned to absorb any surplus, supported by initiatives like Atmanirbhar Bharat, the National Steel Policy, and various proactive government measures such as import duties, anti-dumping actions, PLI schemes, GST relief and enhanced quality standards.
Q: How badly will Indian steel producers be hit in terms of revenue and competitiveness?
A: There may be short-term revenue pressure due to redirected global steel flows. However, India’s steel sector remains strong and ready to grow through innovation, quality, and new market opportunities
Q: Will Indian steelmakers shift focus to other markets?
A: Absolutely. Regions such as Europe, the Middle East, Africa, and ASEAN offer strong growth potential, and ESL Steel is actively exploring these opportunities.
Q: What is the impact of Trump’s 50% tariff on Indian steel and business?
A: While direct exports of Indian steel to the US are limited (around 0.1% of total finished steel production), the ripple effects will be felt through increased global competition as trade flows shift. Additionally, India’s engineering goods exports—particularly iron and steel articles worth over $3 billion to the US—may face short-term disruptions.
Q: Is this a temporary trade tactic or a long-term policy shift?
A: Given the strong strategic partnership between India and the US, we view this as a short-term trade pressure tactic. Even if extended, India’s resilient economy, robust domestic demand, and global alliances will help mitigate the impact.
