Raising the Bar: India’s Import Tax to Fortify Domestic Industry!

Indian steel firms' stocks shot up on March 19, 2025, after a suggestion by the Directorate General of Trade Remedies (DGTR) for a provisional 12% duty on some steel imports. The step is to safeguard the domestic industry from cheap imports, especially from China, that have sharply undercut local prices. Market leaders such as Tata Steel and JSW Steel rose up to 7% as investors anticipated better profitability expectations.

 

The recommendation by DGTR is for a 200-day period, subject to formal notification by the Finance Ministry. The safeguard duty is likely to result in a price hike of approximately ₹2,100 per ton on domestic steel products, boosting earnings expectations of the sector. The move has been viewed as a key step towards supporting India's steel sector at a time when import levels are rising.

 

Source: Reuters