Friday, 8 July 2016

India promoting its steel industry with trade protectionism: Global Times

BEIJING: India is promoting its steel industry with trade protectionism and making China a "primary victim" of trade investigations, China's official media alleged today and asked New Delhi to adopt "open-mindedness" towards the world's largest steel producer. "It seems India is seeking to boost its
domestic steel industry with some help from trade protectionism, making China a primary victim of Indian trade investigations," an article in the state-run Global Times said. "It is true that protecting Indian steel firms from intense international competition can buy some time for the industry's domestic expansion. But such moves will reduce India's competitiveness in the long run," the article said. While steel firms in many parts of the world are experiencing a painful process to cut overcapacity, India is looking to significantly expand its domestic steel sector, it said quoting reports that India wants to almost triple the size of its steel industry over the next decade to reduce its reliance on imports. "However, there are major questions over whether India can really realise its dream of becoming a global steel-producing colossus," it said. "Though the Prime Minister Narendra Modi administration called for the significant expansion of the steel industry, the government itself may be the major cause of a possible failure in the strategy's implementation," it said.

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