Sitharaman calls for global framework to tackle steel overcapacity crisis

Finance Minister Nirmala Sitharaman has made a strong pitch for coordinated global efforts to manage the persistent problem of steel overcapacity, emphasizing that piecemeal trade measures fall short of addressing the structural challenges facing the sector.

Speaking on the issue, Sitharaman argued that unilateral tariffs imposed by individual nations serve only to redirect surplus steel supplies to alternate markets rather than curtail overproduction at its source. She underscored the need for multilateral frameworks that place meaningful constraints on government subsidies that artificially prop up steel production in various countries.

The Finance Minister's remarks come as India navigates its own expanding steel consumption amid industrial growth and infrastructure development. By inviting worldsteel, the global industry association, to engage in these discussions, India has signaled its commitment to shaping international responses to overcapacity that protect legitimate market interests while promoting fair competition.

The intervention reflects New Delhi's broader position that sustainable solutions to global trade imbalances require coordinated action among major economies rather than tit-for-tat protectionist measures that risk escalating trade tensions and disrupting supply chains across Asia and beyond.