India Implements 12% Safeguard Duty on Steel Imports

India has imposed a 12% provisional safeguard duty on steel imports for 200 days to protect domestic producers. The move aims to address the surge in imports, particularly from countries like China and Japan, which threaten the domestic steel industry's competitiveness and escalate raw material prices.

In an effort to shield its domestic steel industry from an influx of cheaper foreign imports, India announced the imposition of a 12% provisional safeguard duty for the next 200 days on key steel product categories. The decision comes as a response to the findings of the Directorate General of Trade Remedies (DGTR), which identified a significant surge in steel imports threatening domestic producers.

The affected categories include hot rolled coils, sheets, plates, and others critical to various manufacturing sectors. The duty is applicable to imports below specified price thresholds, intended to curb the impact of overseas steel flooding the market from countries like China, Japan, and South Korea. Domestic steelmakers have welcomed the move, although it has faced criticism from sectors dependent on steel imports, citing increased raw material costs.

Crafted to provide a level-playing field against sudden import surges, the safeguard duty serves as a temporary measure under World Trade Organization rules. However, it has drawn ire from the Federation of Indian Export Organisations, which warns that escalated steel costs could hinder engineering exports. With imports having tripled from 2.293 million to 6.612 million tonnes within two years, the duty marks a significant step in reigning in steel import dependency.

(With inputs from agencies.)