Steeling the Market: India Weighs Safeguard Duty

The Directorate General of Trade Remedies (DGTR) has proposed a 12% safeguard duty on some steel imports for 200 days to protect domestic firms. The proposal follows a rise in imports from countries like China and is contested by steel users who fear higher costs could hurt competitiveness.

The Directorate General of Trade Remedies (DGTR) has recommended the imposition of a 12% provisional safeguard duty on certain steel imports for 200 days.

This move aims to shield domestic producers amid rising imports from China, Japan, and South Korea, which have surged from 2.293 million tonnes in 2021-22 to 6.612 million tonnes recently.

However, industry stakeholders express mixed reactions: domestic steel makers support the move, while users warn of elevated costs, potential inflation, and adverse effects on competitiveness, especially for MSME exporters in engineering sectors.

(With inputs from agencies.)