The influx of cheaper Chinese steel products is significantly impacting the profitability of Indian steel companies, according to BigMint. Despite a basic customs duty of 7.5%, import prices for Chinese steel remain lower than domestic prices, leading to reduced profit margins and jeopardizing investment plans within the Indian steel industry. Profitability has plummeted by 58-95% in the first quarter of fiscal year 2024/2025 compared to the previous year. India has also become a net importer of steel, with Chinese imports constituting about one-third of total steel imports in FY2023/2024. The Indian Steel Association has raised concerns about Chinese imports being diverted through ASEAN countries to exploit lower tariffs.