Impact of 12% Safeguard Duty on India's Steel Industry

India has imposed a 12% provisional safeguard duty on imported flat steel products to curb cheap imports from China, South Korea, and Japan. This move aligns with global efforts to protect domestic production, enhance investor confidence in the steel sector, and boost national growth.

The Indian government's decision to impose a 12% provisional safeguard duty on imported flat steel products is a strategic move aimed at curbing the significant influx of cheap imports from countries like China, South Korea, and Japan. This measure was announced by the Indian Steel Association (ISA) to address the growing concerns of domestic producers.

The ISA reported that these countries constituted 78% of the total steel imports in fiscal year 2025. Following an investigation initiated in December 2024 by the Directorate General of Trade Remedies (DGTR), it was found that the rise in imports of both non-alloy and alloy steel flat products was harming local manufacturers.

The Commerce Ministry, aligning with global practices, recommended the safeguard duty to support local industries. This initiative is part of India's broader strategy to create a self-reliant economy, aiming for a capacity build-up of 300 million tonnes by 2030, essential for an industrial resurgence and expanded national growth.

(With inputs from agencies.)