Explanation:

Currently the cost of production of domestic steel companies is more than the import parity price at 10
per cent import duty and hence is not globally competitive. To make the domestic production of steel
sustainable following steps can help:
o increasing basic customs duties on certain primary iron and steel products
o imposing anti-dumping duties on steel imported from other nations
o imposing provisional safeguard duty
o imposing minimum import price
All the above steps have been taken by the government in recent times as explained in the Economic
Survey 2015-16.
Statement 1 is incorrect as decreasing basic customs duties would make the imported product cheaper
further eroding the competitiveness of Indian steel manufacturers.
Statement 2 is correct as it would provide Indian steel manufacturers some parity.