Hope Chinese Steel Companies Deeply Integrate into India's Development
"The U.S. imposing large-scale tariffs is highly unreasonable and will cause significant damage to its own economy. From a global perspective, no country can operate entirely independently of others. I believe the U.S. will eventually realize this and make adjustments." On April 21, Nikunj Turakhia, President of the Indian Steel Association for Applications, emphasized in an exclusive interview with China Metallurgical News, "For now, we just need to wait and observe. Time will prove many things."
According to World Steel Association statistics, in 2024, China's crude steel output was 1.005 billion tons, a year-on-year decrease of 1.7%, while India's crude steel output reached 149 million tons, a year-on-year increase of 6.3%, ranking first and second globally, respectively.
Nikunj Turakhia believes that cooperation between the world’s two largest steel-producing countries is not only necessary but also logical. "Currently, there is a significant gap between India's steel industry development level and China's. India needs to learn from China in terms of product technology, cost efficiency, and production capabilities. We also hope Chinese steel companies can deeply integrate into India's development," he said.
"We hope Chinese steel companies actively participate in India's development, engaging in more collaborations beyond just steel trade," he stressed. "They could establish overseas warehouses, set up factories, invest in high-end manufacturing, or even relocate some production capacity to India—this would also be an effective way to mitigate tariff risks."
In his view, Chinese steel companies are currently "standing outside the door," assessing risks and feasibility. Meanwhile, Japan and South Korea, which have free trade agreements with India, enjoy tariff-free access and have thus made more investments in the country.
"EU Carbon Tariffs Will Definitely Be Delayed"
"Although India has made some attempts, producing green steel is not easy. Moreover, carbon tariffs would increase production costs by
50–100 per ton for every country, and no nation is truly prepared to handle this," Nikunj Turakhia stated.
The International Monetary Fund (IMF) released its latest World Economic Outlook Report on April 22, lowering global growth expectations from 3.3% to 2.8%, primarily due to trade policy uncertainties triggered by U.S. unilateral tariffs. Turakhia emphasized that the current global economic situation is complex and severe, with the steel industry facing declining demand—a situation unlikely to improve soon. "Imposing carbon tariffs to add difficulties to the industry is not advisable. The EU carbon tariffs will definitely be delayed, so there’s no need to worry too much about them," he asserted.
India’s National Steel Policy (2017), released in May 2017, outlines a vision to expand crude steel capacity to 300 million tons by the 2030-2031 fiscal year. Recently, Sandeep Poundrik, Secretary of India’s Ministry of Steel, expressed confidence in achieving this target, citing rapidly growing domestic demand. Public data shows that India’s steel production growth rate from 2021 to 2023 was among the highest in the world. However, how will India balance its rapidly expanding steel production with low-carbon transition pressures?
Nikunj Turakhia responded bluntly: "We will not deliberately seek balance. Priority will still be given to ensuring production to meet economic development needs." In his view, European countries emitted large amounts of carbon during their development phase, and it is unfair for them to now demand that developing countries cut emissions. Additionally, "carbon" discussions were more frequent during economic prosperity, but with the recent economic downturn, international focus on the topic has weakened—this is a dynamic process.
*"The 300-million-ton capacity target is not an absolute goal; it will depend on India’s economic conditions and domestic demand,"* he added.
