India Shields Domestic Steel Industry with Crucial Safeguard Duty

The Indian government has imposed a 12% safeguard duty on certain steel imports to protect domestic producers, especially small and medium enterprises (SMEs), from rising import pressures. This measure comes after recommendations from the Directorate General of Trade Remedies and aims to ensure fair competition and bolster the domestic steel industry.

The Indian government has taken decisive action by imposing a 12% safeguard duty on certain non-alloy and alloy steel flat products. This move is intended to alleviate the intense pressure domestic manufacturers have faced due to a surge in imports, particularly benefiting small and medium enterprises (SMEs).

The duty, which will last for 200 days, applies to five categories of steel products including hot rolled coils, sheets, and plates. This measure follows a recommendation by the Directorate General of Trade Remedies and responds to a significant rise in imports that threaten domestic manufacturing, employment, and future investments, as stated by Union Steel Minister H D Kumaraswamy.

According to Tata Steel CEO T V Narendran, these imports, especially from countries with excessive capacities, have posed challenges to India's manufacturing sector. The safeguard duty is expected to restore market balance, ensure fair competition, and support India's goal of a self-reliant and globally competitive steel industry.

(With inputs from agencies.)