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CRGO (grain-oriented electrical steel) import dependence
What it is
Cold-rolled grain-oriented electrical steel forms the magnetic core of every power and distribution transformer, minimising energy loss. India imports close to 90% of its requirement, with only one significant domestic producer
DGTR opened an anti-dumping investigation on 22 Jun 2026 into CRGO and amorphous metals from China, Japan, Korea and Russia, on a complaint by the sole domestic producer
Impact on industries
- Structural rather than cyclical dependence - no commercially scalable substitute exists for utility-grade transformer cores, so the exposure cannot be engineered away
- Anti-dumping duty would raise transformer costs directly and slow grid expansion, which is why CRGO was excluded from safeguard duties in the first place
- Demand visibility is exceptional - Rs 9.15 lakh cr of grid investment to 2032 more than doubles transformer capacity to 2,342 GVA
- Domestic capacity is being built, including a Rs 5,845 cr CRGO expansion, though commercial-scale supply is years away