January 30, NEW DELHI (Reuters) - In the first nine months of the fiscal year to the end of March, India's imports of steel reached a five-year high, making the nation a net importer of completed steel, according to preliminary government statistics obtained by Reuters on Tuesday.

India has been a bright spot for steel producers, both domestically and internationally, thanks to a surge in economic activity and an overhaul of the country's infrastructure. The demand for steel is declining in Europe and the US, in contrast to India.

According to the data, India imported 5.6 million metric tons of completed steel between April and December, a 26.4% increase from the same period last year.

India, the second-largest producer of crude steel in the world, saw a 14.8% increase in steel consumption during that time, reaching a six-year high of 100 million metric tons. This increase was driven by the country's rapidly expanding economy.

Given that the government anticipates that in the upcoming fiscal year, India's economy would grow faster than the rest of the world, the country's demand for steel is expected to remain high.

The steel industry in India has demanded government actions and protections against soaring imports. However, citing robust local demand, the federal Ministry of Steel has rejected proposals for reductions.

T.V. Narendran, the CEO of Tata Steel, the country's second-largest steel producer, stated, "Rising imports are a concern and should be tracked closely as dumping of steel in India can hurt the profitability and hence the investment plans of the steel industry."

Between April and December, South Korea was the leading supplier of finished steel to India, sending 1.77 million metric tons of the alloy—a 4.4% increase over the same time last year and a four-year high.

That ranked slightly higher than China, the world's largest steel producer, whose 1.75 million metric tons of completed steel shipments to India reached a six-year record.

India's lowest finished steel exports in at least six years, totaling 4.7 million metric tons between April and December, might be attributed to a slowdown in demand from outside. 106.1 million metric tons of crude steel were produced, a 13.9% increase over the previous year.