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Emphasising the need to address the challenges of market distorting global excess capacity, India today said it does not provide any financial support for setting up new steel capacities and is committed to fair global trade.
Speaking at the 'Global Forum on Steel Excess Capacity' in Berlin today, India's Steel Minister Birender Singh said the members of the forum have put in significant efforts to come out with present draft progress report as intended by the Hangzhou and Hamburg mandates.
"The central concern expressed by the leaders was to tackle global problem of excess steel capacity and therefore, to remove all market-distorting subsidies and other types of support which lead to excess capacity," he said, adding as WTO members "we all" are committed to fair international trade.
Countries take recourse to trade relief measures like anti-dumping duties, safeguard duties or countervailing duty when there is a deviation from fair trade.
"Unfair subsidy and support measures by one country leads to global repercussion in other countries. These subsidy and support measures lead to market distortion and contribute to excess steel-making capacity," said an official statement quoting the minister.
On the basis of certain guiding principles Global Forum had made "a very few" key recommendations, he said.
While most of the key recommendations in the draft report generally have been agreed by all members there are a few recommendations where some members' have expressed caution, an official statement said quoting Singh said.
"One such area of concern for India is regarding the basis of prescribing key recommendations. While India agrees that the policy recommendations cover all market distorting subsidies and other types of support provided by Government or Government related entities, there should be acknowledgement of existing WTO agreements," he said.
Referring to the policies of Indian government, he said that 'Make in India' initiative are expected to facilitate significant domestic investment in segments like construction, infrastructure including roads, highways and railways, automobile, which will stimulate steel demand in the country.
In view of the optimistic possibilities of future steel sector, India is going to be a major destination for steel investors, he said, adding "Government policies do not provide any financial support for setting up of new steel capacities".
He told the gathering that steel companies have to sustain by being competitive and having disciplined approach towards loan management.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)