New Delhi: Free trade agreements (FTA) with Japan and South Korea have resulted in cheaper imports of steel and has not impacted the domestic production, Parliament was informed today.
"Signing of FTAs with South Korea and Japan have resulted in making import of steel products cheaper from these countries in comparison to others and shifting of sourcing of imports in favour of these countries," Minister of State for Steel and Mines Vishnu Deo Sai told Rajya Sabha in a written reply.
He said FTAs with the two countries have not resulted in decrease in capacity addition or domestic production.
He said India produced 70.67 million tonnes (MT) steel in 2010-11 when its capacity was 80.36 MT. The production went up to 74.29 MT, 78.42 MT and 81.54 MT in respective three years. Capacity during last three years rose to 90.87 MT, 97.02 MT and 99.57 MT respectively.
India had signed FTA with South Korea in January 2010 and with Japan in August, 2012. Under FTA, duties on most of the products, traded between the countries, are either eliminated or reduced sharply. Duties in the related cases come to zero levels in phases.
In a separate question, he said, at present, there is sufficient availability of iron ore to meet the domestic requirement.
First Published: Wednesday, July 16, 2014, 17:59