India Proposes 25% Safeguard Duty on Steel Imports Amid Rising Concerns

In a bid to address challenges faced by the domestic steel industry, the Ministry of Steel has proposed a 25% safeguard duty on specific steel imports. This recommendation emerged from a high-level meeting in New Delhi between Steel Minister H.D. Kumaraswamy and Commerce Minister Piyush Goyal, attended by senior officials and top executives from steel giants like SAIL, Tata Steel, JSW Steel, and AMNS India.

During the discussions, the ministers emphasized the importance of bolstering domestic steel production to enhance India’s global competitiveness. “Strengthening steel and heavy industries is critical for a self-reliant India,” Kumaraswamy stated, stressing the need for collaboration between ministries to ensure ease of doing business and foster innovation.

Steel imports have surged to 5.51 million tonnes (MnT) during April-September 2024-25, up from 3.66 MnT in the same period last year. Imports from China alone rose from 1.02 MnT to 1.85 MnT during this timeframe. Industry leaders have expressed concerns about rising imports from Free Trade Agreement (FTA) countries, which currently enjoy duty exemptions, potentially undermining domestic competitiveness.

Steel Secretary Sandeep Poundrik noted that 62% of steel imports come from FTA countries at zero duty, limiting the impact of a safeguard duty on such imports. Additionally, think tank GTRI highlighted that FTAs often allow Indian firms to partner with foreign producers and re-import steel at concessional rates, further complicating the competitive landscape.

Ajay Srivastava, Founder of GTRI, pointed out operational bottlenecks like port delays and excessive scrutiny, which affect over 10,000 steel-using units. These issues exacerbate financial strains for businesses reliant on essential steel imports.

The government’s proposed duty aims to curb cheap imports, especially from countries like China, and boost domestic production capabilities. The move aligns with India’s broader vision of becoming a global manufacturing hub.