India Weighs Safeguard Duty on Steel Imports Amid Industry Concerns

On 17 March, Darpan Jain, Director General, Directorate General of Trade Remedies (DGTR), said that India is continuing to examine a proposal to impose a safeguard duty on steel imports to shield domestic makers.

The proposal comes at a time when large steel companies are dealing with declining prices that are pressuring profit margins and pushing them to cut back capital expenditure plans.

The Steel Ministry had framed a joint recommendation for a 25% safeguard duty to arrest the surge in imports, especially from China. But to accommodate the interests of all industry stakeholders, according to recent reports, the government is backtracking and is reviewing a lesser tariff of 10-15%. Larger steel producers are in favor of the 25% levy but smaller steelmakers are advocating for no tariffs at all or caps of up to 15%.

Top manufacturers such as Tata Steel and JSW Steel are represented by the Indian Steel Association (ISA), which has been lobbying actively for the duty since December. Their concern is that the higher tariffs imposed by the U.S. and other global markets would simply push that excess steel into India, driving an oversupply and further price declines.

As the government considers possible paths forward, industry leaders are split. According to large firms, a stronger safeguard duty is needed to avoid unfair competition from low-priced imports. So far, smaller steel producers have concerns that higher tariffs may raise input costs that would harm their competitiveness.

This decision is still being discussed and agreed upon, and the steel sector is currently waiting for clarification on government policy. The decision will be significant for domestic producers, trade flows, and future investments in the sector.