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AMNS India CEO Mr Dilip Oommen Sees Real Challenges in Steel Demand Recovery in India

Steel News - Published on Thu, 28 May 2020

Image Source: AMNS India COVID19
ArcelorMittal Nippon Steel India Chief Executive Officer Mr Dilip Oommen told Ishita Ayan Dutt of Business Standard that the real challenge will be to get domestic demand back on track. While answering “A lot of relaxations have been made to the lockdown, what are the challenges now” Mr Oommen said ‘Capacities have already been ramped up on the basis of top-up demand from exports, the real challenge is to get the domestic demand back on track. Also, with migrant labour issue, road movement is affected due to non-availability of drivers. The lockdown in India was the most severe in the world and done with an objective to contain the spread of virus. To give perspective, in April, India’s crude steel production declined by 65 percent YoY, while China maintained at last year’s level. Even in severely affected countries like the US and Germany, the decline was 32 percent and 11 percent, respectively. The challenge in India is that the polices are not uniform across geographies. For the purpose of easing of lockdown, the country has been divided into green, yellow, and red zones, leading to disruptions in supply chain. Here again, individual districts have issued their own guidelines. This has been a major deterrent for production ramp-up in various sectors, especially remain positive on India.’

He suggested “The government should loosen purse strings for infrastructure spends. This must be front loaded as soon as possible. Second, vehicle scrappage policy should be expedited. Third, export incentive must be announced to make India more competitive in the interna- tional market. Fourth, the bank interest rates should come down to move in tandem with the RBI policy. All said, I think Indian business has to move out of ‘lockdown’ mode to looking up mode. We are a large country with amazing latent demand, which can be propelled if right steps are taken by all not only government.”

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Posted By : Yogender Pancholi on Thu, 28 May 2020
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