Congress Highlights Distress in Gujarat’s Stainless Steel MSMEs Amid Surge in Chinese Imports

A recent media report, citing the closure of 30-35% of Micro, Small, and Medium Enterprises (MSMEs) in Gujarat’s stainless steel sector, has become the focal point of criticism from the Congress party. Congress General Secretary Jairam Ramesh took to X to share the report, which quoted Indian Stainless Steel Development Association (ISSDA) President Rajamani Krishnamurti.

Krishnamurti conveyed that the heavy influx of cheaper Chinese imports has placed immense pressure on Indian stainless steel players. The impact has been severe, resulting in the closure of nearly one-third of medium and small businesses in Gujarat between July and September of the previous year.

Ramesh, in response to the distressing statistics, expressed concern over the state of the nation’s MSMEs in the stainless steel sector, with Gujarat alone housing 80% of them. He pointed out that the surge in Chinese imports has significantly contributed to the challenges faced by these businesses. Ramesh emphasized that the government appears to have given China a “clean chit” despite the adverse effects on domestic industries.

Highlighting the source of this information as the President of the Indian Stainless Steel Development Association, Ramesh commended him for speaking out on the issue. However, he also predicted potential challenges for the ISSDA President, suggesting that speaking against the tide might bring unwarranted scrutiny.