India Imposes 12% Safeguard Duty to Protect Domestic Steel Industry

India has implemented a 12% provisional safeguard duty on select steel products for 200 days to shield local producers from import surges. Following the Directorate General of Trade Remedies' investigation, the move aims to stabilize the domestic market despite opposition from user industries fearing higher raw material costs.

In a decisive move to protect domestic steel manufacturers, India has enacted a 12% provisional safeguard duty on specific steel products, including hot rolled coils and sheets, for a 200-day period. The measure seeks to mitigate import surges that threaten local industry viability.

This action follows the Directorate General of Trade Remedies' recommendation after identifying a sharp increase in imports from nations like China, Japan, and South Korea. The inflow has soared from 2.293 million tonnes in 2021-22 to 6.612 million tonnes by September 2024, prompting the government to act swiftly.

While heavyweight steel producers support the duties, fearing further injury from unchecked imports, opposition arises from the user industry, particularly MSME exporters and engineering stakeholders. They argue that increased costs could hinder competitiveness. Despite this, industry leaders and officials emphasize the duty's critical role in ensuring market stability.

(With inputs from agencies.)