The U.S. has questioned India’s Production Linked Incentive (PLI) scheme for specialty steel at the WTO, citing concerns about global overcapacity in steel production.
India argues the scheme is necessary to reduce dependence on imports of high-grade steel and promote self-sufficiency.
The U.S. asked why India is subsidising increased production when global markets already have excess steel.
Specialty steel is part of India’s PLI scheme launched in 2021, covering 14 sectors with a total outlay of ₹1.97 lakh crore.
India remains a net importer of steel, including in FY25, despite being the second-largest steel producer globally.
The PLI scheme aims to boost domestic manufacturing of advanced steel grades, attract investment, and generate jobs.
The scheme is intended to help India move up the value chain and improve steel manufacturing technology.
India insists the scheme complies with WTO rules, as it doesn’t include export conditions or link incentives to exports.
Compared to China’s $50 billion steel subsidies, India’s ₹6,322 crore allocation for specialty steel is relatively small.
The scheme for specialty steel was officially launched by the Ministry of Steel on July 29, 2021.
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