India Moves to Shield Steel Industry: Safeguard Duty Imposed Amid Import Surge, Final DGTR Call by September

Unknown Apr 02, 2026 500 Views

India has ramped up its efforts to protect its domestic steel industry from a flood of low-cost imports, particularly from South Korea and China, by imposing a provisional 12% safeguard duty on key steel products for 200 days. The government is also eyeing a significant expansion of steel capacit...

Key Highlights

12% Safeguard Duty Imposed:

The government has imposed a 12% provisional safeguard duty on five categories of steel products, including hot rolled coils, sheets, plates, and coated steels, effective for 200 days. This move follows a surge in cheap imports that threatened domestic producers.

DGTR’s Final Recommendation Expected by September:

The Directorate General of Trade Remedies (DGTR) began investigating the spike in steel imports in December 2024. Its final findings and recommendations on the safeguard duty’s rate and duration are expected by August-September 2025. The government will then decide on the long-term framework.

Import Surge Led by South Korea and China:

South Korea is now the largest exporter of steel to India, followed closely by China. In FY25, steel imports hit a nine-year high of over 10 million tonnes, with South Korea, China, and Japan accounting for 78% of total finished steel imports.

Domestic Industry Under Pressure:

The influx of cheaper steel—often 7-8% below domestic prices—has made Indian steel exports uncompetitive and squeezed local manufacturers, especially small and medium enterprises. India has become a net importer of steel for the second consecutive year.

Need to Augment Steel Capacity:

The government reiterated its commitment to boosting domestic steel capacity, aiming for 300 million tonnes by 2030. Initiatives like the Production Linked Incentive (PLI) scheme are expected to attract significant investments and enhance competitiveness in high-end steel manufacturing.

Safeguard Duty Structure:

The duty applies to imports below specified prices ($675 to $964 per tonne), ensuring that only genuinely low-priced shipments are targeted. The measure is WTO-compliant and is intended to provide immediate relief while a longer-term solution is crafted.

“This move will provide critical relief to domestic producers, especially small and medium-scale enterprises, who have faced immense pressure from rising imports,” said Union Minister H. D. Kumaraswamy.

India’s decisive action underscores its resolve to balance global trade with the need to protect and grow its domestic steel sector, with more policy clarity expected after the DGTR’s final report by September.

Source: Economic Times, Moneycontrol, Rediff Money, Business World, Times of India

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