Don’t ignore local supply chain, lest you want a rare earth magnet story: Commerce and Industry Minister Piyush Goyal

Union Minister of Commerce and Industry Piyush Goyal said on Tuesday that in India, the steel industry will not leave the “slightest opportunity” to get something even a little bit cheaper. Instead, the industry should look inwards and see whether a source of raw material can be developed in India. “We will immediately rush and import that material,” said Goyal at the Indian Steel Association’s Steel Conclave.

He used the example of the clampdown on the export of heavy rare-earth metals by China as an example to stress self-reliance across the value chain. “The recent turmoil in the world, the permanent magnet ban, almost brought the entire auto industry to its knees. Even after that, you are unable to understand the importance of Aatmanirbhar Bharat, or supporting each other to ensure that the Indian industry does not die in the face of predatory pricing, is our collective duty.”

Goyal, not mincing words, said that the steel industry deserved the safeguard duty at least a few months before it was put in place. “But when met coke needed protection, I didn’t get the support from the steel industry. For a few dollars saving, you preferred to import met coke, and almost brought the entire met coke industry to its knees—killed it—with little realisation that once you did not have met coke suppliers in India, you would have been at the mercy of foreign companies, who might have charged you an arm and a leg, and you had to pay. There would have been no met coke producers in India.”

To tackle pollution generated during construction, Goyal emphasised examining the business case for pre-fabricated steel structures, particularly in tall buildings. “If you can make out a business case, even if it is slightly more expensive, I won’t be surprised if people voluntarily opt for pre-fabricated steel structures.” He also added that he is against making regulations such as one that makes pre-fabricated structures mandatory. “Making anything mandatory starts with an adversarial relationship. I want you to see the business case.”

The minister also exhorted steelmakers to look into shipbuilding. “I think shipbuilding is an industry which is a win-win for both you (the steel industry) and the nation. We need more ships. Frankly, we need ships to be anchored and flagged in India.” He also revealed that he is in discussions with the Shipping Ministry to see what can be done to flag more ships in India.