India can become substantial steel exporter

India, a recent entrant into the global steel trade could become a 'substantial' exporter given its overcapacity and the fall in domestic demand for the product, the US Commerce Department has said.

"Over the past few years, domestic demand in India has greatly decreased, increasing the need for country's steel producers to export their products. In addition government subsidisation has created a steel sector that has a large amount of overcapacity," it said.

However, given the Indian government's involvement in the steel sector, the possibility of unfairly traded steel entering the global market rises as India increases its exports, it said in a report on global steel trade.

Commenting that India may become "an unfair trader to boot," it said the Subsidies Enforcement Office of the US Commerce Department "will continue to ascertain whether subsidies are granted to the Indian steel industry and to ensure that finance for the steel companies is undertaken in a market driven manner".

Outlining protective measures to save the US industry and its workers, the report names China and Ukraine as other nations having significant export potential.

PTI

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