India Imposes 12% Safeguard Duty on Steel Imports to Protect Local Industry
India, the world’s second-largest producer of crude steel, has imposed a temporary 12% safeguard duty on select steel import to curb rising shipments, mainly from China. The move, announced by the Ministry of Finance on Monday, aims to support domestic manufacturers impacted by the influx of cheaper foreign steel.
Duty to Be in Effect for 200 Days
The newly introduced tariff will be enforced for 200 days starting Monday, unless revoked or amended earlier. This marks a significant shift in New Delhi’s trade strategy and follows similar actions by other countries to shield local industries from aggressive imports.
An official order described the measure as a necessary step to manage the surge in low-cost steel flooding the Indian market, which has led to operational slowdowns and potential job losses among local producers.
China Targeted as Imports Surge
Chinese steel, second only to South Korea in volume sent to India, has been a key driver of the import surge. In the fiscal year 2024/25, India remained a net importer of finished steel for the second consecutive year, with shipments reaching a nine-year high of 9.5 million metric tonnes.
India’s Steel Minister H. D. Kumaraswamy emphasised that the safeguard duty is designed to ensure fair competition and provide relief to domestic manufacturers. “This move will provide critical relief to domestic producers, especially small and medium-scale enterprises, who have faced immense pressure from rising imports,” he stated.
Industry Reacts Cautiously to Steel Import Duty
Industry leaders have welcomed the move, calling it a long-awaited step. A senior executive from a top Indian steel company remarked, “The decision is along expected lines and we will now wait and see how this measure supports industry and margins and restricts cheap imports into the country.”
India’s steelmakers’ association, including major players like JSW Steel, Tata Steel, Steel Authority of India, and ArcelorMittal Nippon Steel India, had earlier raised concerns over rising imports and urged the government to take corrective action.
With global steel markets heavily influenced by Chinese exports, India’s safeguard duty could set the tone for other countries looking to reinforce their local industries.
with inputs from Reuters
