Key Numbers
• Product Under Investigation: Cold Rolled Grain Oriented (CRGO) Electrical Steel & Amorphous Metal
• Countries Covered: China, Japan, South Korea and Russia
• India's Annual CRGO Demand: 400,000–450,000 Tonnes
• India's Domestic CRGO Production: 40,000–50,000 Tonnes
• Import Dependence: Around 90%
• Planned Investment in Power Transmission by 2032: ₹9.15 Lakh Crore
• Planned Transmission Network Addition: 191,000 Circuit Kilometres
• Target Transformer Capacity by 2032: 2,342 GVA
Market Analysis
Electrical Steel Enters the Spotlight as India Launches Anti-Dumping Investigation
India's Directorate General of Trade Remedies (DGTR) has initiated an anti-dumping investigation into imports of Cold Rolled Grain Oriented (CRGO) electrical steel and amorphous metal from China, Japan, South Korea and Russia. The investigation follows a petition filed by JSW JFE Electrical Steel Nashik Pvt. Ltd., which has alleged that imported material is being sold in India at unfairly low prices, causing injury to domestic manufacturers. While no duties have been imposed at this stage, the investigation has already triggered discussions across the steel and power sectors regarding its potential impact on manufacturing costs and infrastructure development.
Unlike conventional flat steel products, CRGO electrical steel is a specialised material used almost exclusively in power and distribution transformers. Its superior magnetic properties minimise energy losses during electricity transmission, making it an essential raw material for expanding power networks. As India's electricity demand continues to grow rapidly, access to reliable and competitively priced electrical steel has become increasingly important for both transformer manufacturers and infrastructure developers.
India's Heavy Dependence on Imports Presents a Unique Challenge
The investigation comes at a time when India remains heavily dependent on imported CRGO steel. Industry estimates indicate that the country requires approximately 400,000 to 450,000 tonnes of CRGO annually, while domestic manufacturing capacity is estimated at only 40,000 to 50,000 tonnes. This means nearly 90 percent of India's requirement continues to be met through imports from international suppliers.
Such dependence creates a unique policy challenge. On one hand, strengthening domestic production aligns with the government's broader Make in India and Atmanirbhar Bharat initiatives. On the other hand, any measure that significantly increases procurement costs before domestic capacity expands could affect industries that rely heavily on electrical steel, particularly transformer manufacturing and power infrastructure.
Why Transformer Manufacturers Are Closely Watching the Investigation
Transformer manufacturers have emerged as one of the most closely affected stakeholders in the ongoing investigation. CRGO steel represents one of the largest cost components in manufacturing power transformers, particularly those used in transmission substations and renewable energy projects. Any increase in raw material costs could directly influence transformer pricing and project economics.
According to the Global Trade Research Initiative (GTRI), higher procurement costs resulting from potential anti-dumping duties may increase the overall cost of transformer manufacturing and affect infrastructure development timelines. While the final outcome of the investigation remains uncertain, industry participants are expected to closely monitor developments because transformer demand is projected to increase substantially over the coming decade.
Power Infrastructure Expansion Depends on Stable Raw Material Supply
India has set ambitious targets for expanding its electricity transmission infrastructure to support economic growth, industrialisation and renewable energy integration. According to the National Electricity Plan, the country plans to invest approximately ₹9.15 lakh crore in the transmission sector by 2032, including the addition of nearly 191,000 circuit kilometres of transmission lines and expansion of transformer capacity to around 2,342 GVA.
Achieving these targets will require uninterrupted availability of specialised electrical steel. Large-scale grid modernisation, interstate transmission corridors and renewable energy evacuation projects all depend on timely transformer deliveries. Consequently, policymakers will need to balance the objective of encouraging domestic steel manufacturing with ensuring adequate availability of raw materials for strategic infrastructure projects.
Trade Protection Versus Industrial Competitiveness
The investigation reflects a broader dilemma faced by many developing manufacturing economies. Anti-dumping measures are designed to protect domestic producers against unfair trade practices, enabling them to invest, expand capacity and compete on a more sustainable basis. However, downstream industries that rely on imported inputs may face higher procurement costs if duties are eventually imposed.
India has increasingly relied on trade remedy mechanisms across several steel categories during the past year. Anti-dumping investigations, safeguard measures and quality control requirements collectively indicate a stronger policy focus on supporting domestic manufacturing. At the same time, downstream sectors such as engineering, automobiles, electrical equipment and capital goods continue to emphasise the importance of maintaining internationally competitive raw material costs.
Expanding Domestic Capacity May Be the Long-Term Solution
While the investigation addresses immediate concerns regarding import pricing, it also highlights the need to significantly expand India's domestic production of electrical steel. Investments in advanced metallurgical technologies, specialised rolling mills and high-grade electrical steel manufacturing will be essential if the country aims to reduce long-term dependence on imports.
As renewable energy capacity, electric mobility and power infrastructure continue to expand, demand for CRGO steel is expected to increase steadily. Developing domestic manufacturing capabilities would not only strengthen supply chain resilience but also support India's ambitions of becoming a global manufacturing hub for electrical equipment and power infrastructure.
Industry Impact
The anti-dumping investigation represents an important development for both the steel and power sectors. For domestic electrical steel manufacturers, it provides an opportunity to seek protection against alleged unfair imports and encourage future investments. For transformer manufacturers and infrastructure developers, however, the investigation introduces uncertainty regarding future raw material costs at a time when large-scale grid expansion is underway.
The outcome will therefore influence far more than steel imports. It could shape investment decisions across transformer manufacturing, transmission infrastructure, renewable energy projects and India's broader industrial supply chain.
Outlook
The DGTR investigation is expected to continue over the coming months as evidence is collected from domestic producers, overseas exporters, importers and downstream users. No anti-dumping duties have been imposed at this stage, and any final decision will depend on the findings regarding dumping, injury and public interest.
For India's steel industry, the investigation highlights the increasing importance of specialised steel products beyond conventional construction and infrastructure grades. As the country pursues rapid electrification, renewable energy expansion and manufacturing growth, developing a competitive domestic electrical steel ecosystem may become just as important as expanding overall steel production capacity.
Disclaimer: This analysis is based on publicly available information regarding the ongoing DGTR investigation and independent industry reports. The investigation remains ongoing, and no final determination regarding anti-dumping duties has been made.