In a troubling development, approximately 35% of Stainless Steel Micro, Small, and Medium Enterprises (MSMEs) in Gujarat have ceased operations during the second quarter of the fiscal year 2024.

This dire situation is attributed to the adverse effects of Chinese dumping, which has inundated the market with low-priced stainless steel, rendering local businesses unable to compete.

The Indian Stainless Steel Development Association (ISSDA) Chief highlighted the severe consequences of this economic downturn, emphasising the urgent need for intervention.

Chinese dumping refers to the practice of selling goods in foreign markets at prices below production costs, often subsidised by the Chinese government, creating an uneven playing field for domestic industries.

These closures have profound implications for the regional economy, leading to unemployment and economic instability.

The ISSDA is actively engaging with stakeholders and authorities to formulate strategies aimed at mitigating the impact of foreign trade practices on local industries.

This crisis underscores the importance of robust trade policies and international cooperation to safeguard the interests of domestic businesses and workers.