PHDCCI Advocates Zero-Duty Access To Critical Raw Materials To Strengthen India's Steel And Ferro-Alloys Industries

New Delhi, November 10, 2026: The PHD Chamber of Commerce and Industry (PHDCCI) has recommended a series of customs duty rationalisation measures for the steel and ferro-alloys industries in its Pre-Union Budget 2027–28 proposals, emphasising the need to ensure competitive access to critical raw materials, strengthen domestic manufacturing and support India's industrial and infrastructure ambitions.
India remains the world's second-largest crude steel producer. During FY2025–26, crude steel production reached 168.4 million tonnes, compared to 152.18 million tonnes in FY2024–25, registering growth of approximately 10.6%. Finished steel production stood at 160.90 million tonnes in FY2025–26. Between April and August 2026, India exported approximately 2.986 million tonnes of finished steel, valued at ₹23,646.6 crore.
The ferro-alloys industry also plays a significant role in India's metallurgical and manufacturing ecosystem. According to the Indian Ferroalloys Producers' Association, total ferro-alloys production stood at 5.2 million tonnes in FY2024, of which exports accounted for approximately 2.6 million tonnes. Manganese alloys and chrome alloys remain important contributors to domestic production and exports.
To improve the competitiveness of the steel industry, PHDCCI has recommended reducing the Basic Customs Duty to zero on roasted molybdenum concentrate and ferro-molybdenum until commercial-scale domestic production of molybdenum becomes available. It has also proposed zero-duty access for ferro-nickel molybdenum and specified high-carbon silicon alloys, considering their importance as essential industrial inputs.
We further recommended reducing customs duties on titanium sponge and ferro-niobium, given their significance in specialised steel manufacturing, aerospace, defence, engineering and other high-performance industrial applications.
On steel scrap, we proposed continuing the existing Basic Customs Duty framework beyond March 2028, highlighting India's dependence on imported scrap for electric arc furnace and induction furnace-based steel production.
We have also called for reducing the Basic Customs Duty on graphite electrodes from 7.5% to zero, citing their essential role in electric arc furnace steelmaking and the absence of a viable substitute for this application.
Access to competitively priced industrial inputs is particularly important for small and medium-sized steel producers, who face cost pressures arising from imported raw materials and essential production consumables.
Steel scrap, graphite electrodes, ferro-alloys and specialised alloying materials are integral to the production of crude steel, stainless steel, billets, TMT bars, structural steel, automotive components, industrial machinery, pipelines and specialised engineering products. Their availability at competitive prices has implications across infrastructure, construction, automotive, energy and capital goods industries.
" A rationalised customs duty framework for inputs such as molybdenum, ferro-alloys, graphite electrodes and steel scrap, while supporting domestic recycling and resource efficiency, can improve cost competitiveness, strengthen downstream industries and facilitate the transition towards more efficient steel production said Anil Gupta, President, PHDCCI."
We believe that a predictable and competitive customs duty structure for essential industrial inputs can support investment, improve manufacturing efficiency and strengthen the integration of India's steel and ferro-alloys industries with global manufacturing value chains.