India's Steel Consumption Lags: Will Import Duties Help Close the Gap?

A recent report suggests that the proposed safeguard duty on steel imports will have a limited impact on India's domestic steel industry. The duty, if imposed, would primarily affect imports from China, as 62% of steel imports come from countries with Free Trade Agreements (FTAs) and are exempt from duties. While the measure aims to protect local producers from cheap imports, it may not fully address the industry's challenges. The report highlights that India's steel consumption remains below the global average, indicating potential for growth. The steel ministry has proposed a 25% safeguard duty, but implementation could be delayed until late 2025.
Source: HDFC Securities report, as reported by ANI