MSME Engineering Exporters Concerned Over Proposed 25% Safeguard Duty on Steel Imports

MSME engineering exporters have expressed concerns over the government’s proposal to impose a 25% safeguard duty on steel imports, warning that it could harm domestic competitiveness and negatively impact the sector’s outbound shipments. Hand Tool Association Chairman S.C. Ralhan stated that MSME exporters are already grappling with liquidity issues and the high prices of steel in the domestic market. He emphasized that increasing steel prices by local manufacturers is already straining businesses, and an additional duty would worsen the situation.

Federation of Indian Export Organisations (FIEO) Director General, Ajay Sahai, further added that if the safeguard duty is implemented, it must be accompanied by measures to prevent domestic steel companies from raising input prices. Such an increase could adversely affect the export of value-added steel products, he warned.

The steel ministry’s proposal for the safeguard duty follows growing concerns among domestic steel players regarding rising imports of cheap steel from countries like China. The suggestion emerged after a meeting between Union Steel Minister H.D. Kumaraswamy and Commerce Minister Piyush Goyal on December 2.

Meanwhile, the Global Trade Research Initiative (GTRI) reported significant delays in the clearance of imported steel at Indian ports like JNPT due to complicated procedures imposed by the Ministry of Steel. These delays have disrupted production schedules and tarnished India’s global reputation, with even nations like Japan formally requesting the government to expedite the release of stranded shipments. GTRI Founder Ajay Srivastava noted that steel imports are vital for India’s production, as half of these imports consist of critical raw materials and specialized items that India cannot produce in sufficient quantities.

With the proposal under review, MSME exporters urge the government to carefully assess the impact of the safeguard duty on the sector’s future growth and competitiveness in the global market.