India's Strategic Safeguard Duty: Boosting Local Steel Industry Fortunes

The Indian government has imposed a safeguard duty on steel imports to protect domestic producers and downstream supply chains. The duty starts at 12% and will decrease to 11% over three years. This move aims to ensure fair competition, self-reliance, and stabilize local steel prices during peak demand.

The Indian government has extended its safeguard duties on select steel products to shield the domestic steel industry from global market fluctuations and low-cost imports. This protective measure, starting at 12% and gradually reducing over three years, aims to balance the market and ensure self-reliance.

Industry leaders, including Ranjeet Mehta of PHDCCI and Sumit Jhunjhunwala of ICRA, have praised this move as a strategic step to support local producers against competitive foreign pricing. Despite a drop in Chinese hot-rolled coil prices, the duties will help maintain a favorable pricing environment for Indian mills.

This initiative signifies India's commitment to industrial strategy reform, with the government signaling its intent to foster fair market conditions. The safeguard duty is viewed as essential for stabilizing prices and securing the domestic industry's future amid volatile international dynamics.