India is expected to impose a safeguard duty of up to 25pct on steel imports to counter cheap supplies, primarily from China, Reuters reported.
Major producers like JSW Steel, Tata Steel, and ArcelorMittal Nippon Steel India have raised concerns about the influx of cheaper Chinese imports.
Between April and November 2024, India’s steel imports surged 27pct YoY to 6.5 mln tons, with China, South Korea, and Japan accounting for 79pct of total finished steel imports.
The Directorate General of Trade Remedies is investigating whether low-priced imports from China are harming domestic steelmakers. The duty is likely to be implemented once the investigation concludes.
Pankaj Chadha, chairman of the Engineering Export Promotion Council of India (EEPC), stated that micro, small, and medium enterprises (MSMEs) will receive raw materials at FOB export prices, approximately 20pct lower than market rates. This arrangement is expected to benefit small manufacturers, who consume about 1 mln tons of steel annually.
India, the world’s second-largest crude steel producer, became a net importer in the last financial year, with imports reaching record highs during the first seven months of FY25. Ensuring affordable steel supplies for small industries has cleared a major hurdle for imposing the temporary tax, according to a government official.
