India Imposes 12% Safeguard Duty on Steel: A Step Towards Self-Reliance

India introduced a 12% safeguard duty on certain flat steel products to protect its domestic industry from a surge in low-priced imports, mainly from China, South Korea, and Japan. This temporary measure, effective April 21, 2025, aims to support local steelmakers and align with international trade practices.

In a strategic bid to protect its domestic steel industry, India has enforced a 12% safeguard duty on specific flat steel products for a span of 200 days, as announced on April 21, 2025. This decision comes amidst a notable rise in inexpensive steel imports primarily from China, South Korea, and Japan, which comprised 78% of India's steel imports in the fiscal year 2024-25.

The Directorate General of Trade Remedies (DGTR) proposed the duty following a comprehensive investigation that commenced in December 2024. Findings from the probe highlighted the adverse impact of increased imports of both non-alloy and alloy steel flat products on local producers. As the world's second-largest crude steel producer, India experienced a nine-year high in imports, reaching 9.5 million metric tons in 2024-25, marking the country as a net importer of finished steel for two consecutive years.

Industry heavyweights such as JSW Steel, Tata Steel, the Steel Authority of India, and ArcelorMittal Nippon Steel India have backed this move, appreciating the government's effort to safeguard domestic enterprises, especially small and medium-sized manufacturers. Naveen Jindal, President of the Indian Steel Association, expressed gratitude for the duty, viewing it as pivotal for fostering investor confidence and advancing capacity towards a 300-million-ton production goal by 2030, aligned with India's aspirations for self-reliance and economic fortification.

(With inputs from agencies.)