India Imposes Provisional Safeguard Duty on Steel Products to Control Surge in Imports

April 21, 2025 10:00 PM

India Imposes Provisional Safeguard Duty on Steel Products to Control Surge in Imports

In a move aimed at protecting domestic manufacturers, the Indian government has imposed a provisional safeguard duty on the import of certain steel products. The decision comes amid growing concerns over an unexpected surge in cheap steel imports, which could potentially harm the domestic steel industry.

The Ministry of Finance issued a notification stating that a provisional safeguard duty has been levied on select types of steel to curb unwanted imports and prevent serious injury to domestic producers. This duty is a temporary measure, designed to give Indian steelmakers a fair chance to compete in the market.

The safeguard duty will apply to specific flat steel products that have seen a significant increase in imports over the past few months. Officials noted that dumping of steel at low prices, particularly from countries like China, South Korea, and Vietnam, has raised alarms within the Indian steel sector. The duty aims to bridge the price gap and support domestic companies that have been operating under pressure due to cheaper imports.

The decision follows an investigation conducted by the Directorate General of Trade Remedies (DGTR), which recommended the imposition of the duty based on preliminary findings. The DGTR found that the sudden increase in imports had led to declining sales, reduced profits, and job losses in the domestic industry.

A senior government official stated, “The safeguard duty is a necessary step to stabilize the market. Our domestic steel sector needs time to recover and become more competitive globally. This is not a protectionist move but a fair measure to ensure level playing conditions.”

Industry experts have welcomed the move, saying it will help in boosting domestic production and investor confidence. However, some trade partners may express concern over the new measure, and it remains to be seen how this affects India’s trade relations.

The duty will remain in effect for a specific period, during which the government will monitor the market closely and may adjust the measure based on further findings.