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Protections are acceptable if they are for a short-term or are temporary in nature, Naushad Forbes, President, Confederation of Indian Industry, said here on Tuesday.
However, he did pointed out that protections lead to temporary “cost to consumers”.
“If protection (is) temporary, we can accept. In the long term it (country) has to do away the protections. The long-term objective has to be free trade with the world,’’ Forbes said while responding to specific questions on protections sought by the Indian steel industry against Chinese dumping.
“Protection is also a cost and tax on the end user,” he added.
India has imposed protections like safeguard duty and minimum import price on steel.
Forbes pointed out that while the total domestic consumption of steel (in India) was 200 million tonnes, the Chinese overcapacity was 400 mt. This has led to a problem.
Meanwhile, TV Narendran, MD, Tata Steel (India and South East Asia) and CII Eastern regional Chairman, added that Indian steel industry was not unique in seeking protections.
“Across the world over countries are doing the same. What you are seeing is a temporary measure….China wanted to export their way out of trouble,” he said adding that the steel industry was not seeking protections before January.
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