Safeguard Duty Sparks Supply Chain Concerns in Construction Equipment Sector

The Indian Construction Equipment Manufacturers' Association urges the government to reconsider the 12% safeguard duty on steel imports, citing potential disruptions to supply chains and increased costs. The decision could affect production continuity, resulting in higher project expenses and affecting India's competitiveness in the global market.

The Indian Construction Equipment Manufacturers' Association (ICEMA) has called on the government to reassess the 12% safeguard duty imposed on select steel products. The association warns that this move could disrupt supply chains and cost structures within the sector.

ICEMA highlighted that steel is a crucial raw material for construction equipment manufacturing, specifically the high-tensile and performance-grade variants not widely produced in India. As these materials are mostly imported, the newly imposed duty threatens manufacturers' access to essential supplies.

Furthermore, the association cautioned that the decision could jeopardize India's competitiveness in the global construction equipment arena, particularly as international markets seek alternatives to China. Rising input costs may compel Indian manufacturers to raise prices, impacting infrastructure project budgets countrywide.

(With inputs from agencies.)