India Slaps 12% Safeguard Duty on Steel Imports Amid Surge, Industry Concerns

In a move aimed at curbing a surge in steel imports that threaten domestic producers, the Indian government has imposed a 12% safeguard duty on certain steel products for 200 days. The Finance Ministry issued a notification confirming the immediate implementation of the provisional duty, following recommendations from the Directorate General of Trade Remedies (DGTR).

The decision comes as India, the world’s second-largest crude steel producer, recorded a nine-year high in finished steel imports during FY 2024-25. According to provisional government data, steel imports reached 9.5 million metric tons, making India a net importer for the second consecutive year.

The DGTR began its investigation in December 2024 after receiving complaints from the Indian Steel Association on behalf of leading steelmakers including ArcelorMittal Nippon Steel India, JSW Steel, Jindal Steel and Power, Bhushan Power & Steel, and the state-owned Steel Authority of India Limited (SAIL).

The probe focused on ‘Non-Alloy and Alloy Steel Flat Products’, widely used across sectors like construction, fabrication, auto manufacturing, and electrical equipment. The DGTR’s preliminary findings revealed a “recent, sudden, sharp and significant increase” in the import of these products, posing a serious threat to domestic manufacturers.

Citing “critical circumstances,” the DGTR warned in its March 18 notification that any delay in implementing safeguard measures could cause irreparable damage to the industry.

“The safeguard duty… shall be effective for a period of two hundred days, unless revoked, superseded or amended earlier,” the Finance Ministry stated.

The 12% ad valorem duty aims to provide temporary relief to domestic producers grappling with price pressures and market share losses due to an influx of cheaper imports.

The move reflects growing protectionist trends in global trade as major steel-producing nations seek to shield their industries from international volatility and dumping practices.

Industry watchers now await further developments as the government monitors the impact of the duty and considers long-term strategies to bolster the sector.