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Speaking at the IECRP 2025 exhibition, he remarked, “Steel and cement industries are in the hands of a few people. They always decide the rates. Their cartelism is a big problem for the country.”
This is not the first time Gadkari has raised concerns about the industries’ pricing practices. In January 2021, he had written to the Prime Minister, alleging that major players in these sectors were artificially inflating prices, making it difficult to achieve the government’s vision of a $5 trillion economy.
Addressing the ‘CRISIL India Infrastructure Conclave’ in 2023, he reiterated, “The steel industry and cement industry… whenever they get the chance, they make the cartel and increase the rate.”
Gadkari proposed using fibre-reinforced plastic (FRP) as a viable alternative to reduce dependency on these sectors. “To create alternative material is my important interest to support you,” he said, pledging full support to the FRP sector. However, he urged FRP manufacturers to ensure their products are at least 20-25% cheaper than steel to gain traction.
Also read: Macquarie upgrades cement stocks, sees nearly 20% upside amid demand recovery
Highlighting FRP’s versatility, he pointed out its applications across infrastructure, aviation, shipping, road construction, and metro rail. He also emphasised the need for domestic production and robust research to strengthen the sector.
Gadkari further outlined ambitious goals, including reducing hydrogen production costs to $1 per kg—down from the current ₹300/kg—to position India as an energy exporter. Additionally, he expressed confidence in transforming India into the world’s largest automobile manufacturing hub, up from its current third position, within five years.
Steel industry faces mounting challenges
On the other hand, India’s steel market is grappling with challenges from “unfair imports and dumping,” exacerbated by a demand slump in China. Former Steel Secretary Nagendra Nath Sinha, speaking at a media event in August last year, emphasised the need for the government to address the issue in a time-bound manner.
Sinha highlighted that rising imports are impacting the profitability of steelmakers by affecting price realisations. “To the extent that the imports currently happening are unfair and there is dumping going on, the Indian government should certainly respond to them in a timeframe,” Sinha remarked.
His comments are particularly significant as domestic steel players have been voicing concerns for months over rising imports from certain countries, including China. Steelmakers have also expressed worry that India risks becoming a net importer of steel, contrary to its aspiration of becoming a global supplier.
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