Imports of ferrous scrap metal will probably fall by 25 per cent over the next year, reports The Economic Times.
This is because the rupee is much weaker against the dollar leading to higher inflation in India.
The country’s metal recycling industry is forecasting that it will buy 3.5 million tonnes of ferrous scrap in the next year, compared to 4.5 million tonnes last year.
Infrastructure development has slowed in India as higher inflation has had an impact.
Recyclers in India are calling on the Government to remove the 5 per cent import duty on scrap metal as well as import duties on recycling equipment and radiation detectors to make the industry more competitive.
Metal Recycling Association of India president Ikbal Nathani told The Economic Times: “This year will be tough for all of us. We are working under tremendous pressure and seeking duty cuts from the Government.”