Indian Finance Minister Nirmala Sitharaman has proposed eliminating the import duty on ferro-nickel, a key raw material for stainless steel production, and extending the duty exemption on ferrous scrap imports.
“To reduce the cost of production for steel and copper, I propose removing the basic customs duty (BCD) on ferro-nickel and blister copper,” Sitharaman stated in her Union Budget speech on July 23. “I am also continuing with the nil BCD on ferrous scrap and nickel cathode and a concessional BCD of 2.5pct on copper scrap.”
The customs duty on ferro-nickel has been reduced from 2.5pct to zero, making it duty-free, while the duty exemption on ferrous scrap has been extended to March 2026.
“We welcome the duty exemption on ferro-nickel and the continuation of zero duty on ferrous scrap and pure nickel,” said Abhyuday Jindal, Managing Director of Jindal Stainless. “This will help the domestic stainless steel and alloy steel industries maintain their competitiveness.”
Ferro-nickel, with its high nickel content, is a crucial alloying agent in stainless steel production, enhancing the steel’s strength, toughness, and resistance to corrosion and oxidation. India primarily imports ferro-nickel from Indonesia, followed by Korea, Singapore, Switzerland, and Albania. In 2022, India was the fourth-largest importer globally.
