The Indian forging Industry expressed serious concern over increasing domestic steel prices, according to a top official of an industry body.
It also sought ₹200 crore from the government under the Technology Upgradation Fund scheme for modernisation of SMEs in the foundry sector.
“For the last three quarters, we have been posting growth,” said S. Muralishankar, president, Association of Indian Forging Industry (AIFI).
“However, domestic steel prices have gone up by ₹6,000 per tonne in the last 12 months. Also, there is a gap between the quality of domestic and international steel. Steel imports are also not viable considering the levies. The supply of steel within the country is also less than that of demand,” he added.
‘EV focus harmful’
AIFI also expressed concern over the Centre’s renewed focus on electric vehicles (EVs) as it could wipe out the entire industry.
The introduction of EVs would have an adverse impact on the Indian forging industry as 60% of such units were into manufacturing of auto components. Currently, India sells 22,000 EVs of which 2,000 units were four wheelers, he said.
Internal Combustion Engines have about 2,000 moving parts compared with only 20 in EVs. As a result, on an average 60-70% of demand for forged auto components would be lost, resulting in job losses and shutdown of units, he said.
“The need of the hour is aggressive and assertive political action that will provide a level playing field to Indian manufacturers to become competitive in the global platform and other relevant policy reforms to foster ease of doing business,” he said.
AIFI, the apex body of Indian Forging Industry, is organising the seventh edition of Asiaforge 2019 at Mamallapuram, in which business leaders from the forging sector are likely to discuss about the key challenges and concerns facing the sector.
