Safeguard duty introduced to reduce excessive steel imports from specific countries

The Indian government has introduced a 12 percent safeguard duty on imported flat steel products to address the surge in low-priced imports from select countries, including China, South Korea, and Japan. This provisional measure, effective for 200 days, aims to shield domestic steel manufacturers from the adverse impact of predatory pricing and restore market stability.  

 

The decision follows an investigation by the Directorate General of Trade Remedies, which revealed that the sharp increase in imports of non-alloy and alloy steel flat products was causing significant injury to domestic producers. Imports reached a nine-year high of 9.5 million metric tonnes in FY25, with China, South Korea, and Japan accounting for 78 percent of the total.  

 

Industry leaders, including the Indian Steel Association, have welcomed the move, emphasizing its importance in fostering investor confidence and supporting capacity expansion toward achieving 300 million tonnes of production by 2030. The safeguard duty is expected to create a level playing field for domestic players and contribute to the vision of a self-reliant India.  

 

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Source: Economic Times, Moneycontrol, The Hans India.