India to Impose 12% Safeguard Duty on Steel Imports

NEW DELHI: To counter a surge in inexpensive steel arriving from China and other nations, India is preparing to implement a provisional safeguard duty of 12% on steel imports, according to a government source familiar with the matter.

The government intends to put the tariff into effect as swiftly as possible, the source stated confidentially on Monday.

India, the world’s second-largest producer of crude steel, also registered as a net importer of finished steel for the second year running in fiscal year 2024/25, with import volumes reaching a nine-year peak of 9.5 million metric tons, based on preliminary government data.

Last month, the Directorate General of Trade Remedies (DGTR), functioning under the trade ministry, proposed a 12% tariff on specific steel products for a duration of 200 days to curb the flow of budget-friendly imports.

This recommendation followed an investigation initiated last December to determine if unrestricted imports were detrimental to India’s domestic steel sector.

“There is confirmation that the duty will be 12%, and a decision is anticipated promptly,” the source noted regarding the previously undisclosed strategy to proceed with the DGTR’s recommendation.

The Ministry of Finance did not provide an immediate response to a request for comment.

India’s imports of finished steel from China, South Korea, and Japan reached a record high in the initial 10 months of the fiscal year concluding in March.

Imports originating from China, South Korea, and Japan constituted 78% of India’s total finished steel imports.

The influx of lower-priced steel has compelled smaller Indian mills to reduce their operational capacity and evaluate workforce reductions.

India is now among the increasing number of countries considering measures to control imports.

The leading steelmakers’ association, which includes JSW Steel, Tata Steel, Steel Authority of India, and ArcelorMittal Nippon Steel India, has voiced concerns regarding imports and advocated for restrictions.