India Imposes 12% Safeguard Duty on Steel Imports to Boost Domestic Industry

The safeguard duty is expected to not only curb unfair trade practices but also encourage domestic manufacturers to ramp up production and invest in technological upgrades.

In a significant move aimed at bolstering India's steel industry, the Union Government has imposed a 12 percent safeguard duty on the import of select non-alloy and alloy steel flat products. This strategic decision comes amid growing concerns over a surge in low-cost steel imports, which have been impacting the competitiveness and sustainability of domestic producers.

Union Minister for Steel and Heavy Industries, Shri H. D. Kumaraswamy, welcomed the announcement, describing the duty as a “timely and necessary intervention” to protect the interests of India’s steel manufacturers. The safeguard duty, he noted, is intended to provide much-needed relief to domestic producers who have been grappling with rising volumes of imported steel at uncompetitive prices.

“This move will provide critical relief to domestic producers, especially small and medium-scale enterprises (SMEs), who have faced immense pressure from the growing influx of cheaper steel products,” said Shri Kumaraswamy. “The imposition of this duty will help restore a level playing field, enhance market stability, and encourage increased investment and production within the country.”

The measure aligns with the broader goals of the Government’s “Atmanirbhar Bharat” (self-reliant India) initiative, which emphasizes strengthening strategic sectors, including steel, to reduce dependency on imports and build resilient supply chains. India’s steel industry, which ranks as the second-largest in the world, is seen as a critical pillar in the nation’s economic growth and infrastructure development.

Shri Kumaraswamy also expressed his deep appreciation to the Hon’ble Prime Minister Shri Narendra Modi for his visionary leadership in supporting core industrial sectors. “The Prime Minister’s steadfast commitment to the cause of self-reliance and strategic autonomy is clearly reflected in this decision,” he added. “The Ministry of Steel remains dedicated to working with all stakeholders to ensure the Indian steel sector becomes more resilient, self-reliant, and globally competitive.”

The safeguard duty is expected to not only curb unfair trade practices but also encourage domestic manufacturers to ramp up production and invest in technological upgrades. Industry experts believe this step could also lead to job creation, enhanced capacity utilization, and improved global positioning for Indian steel.

In the coming weeks, the Ministry of Steel plans to hold consultations with industry leaders, trade bodies, and other stakeholders to monitor the impact of the safeguard duty and to explore additional measures that can further support the domestic industry.

This policy action is seen as part of a broader effort by the government to address trade imbalances and ensure that Indian industries are not undermined by predatory pricing or dumping practices by foreign players. The Ministry is also expected to continue evaluating import trends and take further steps as necessary to uphold the integrity and competitiveness of India’s steel sector.

As global demand for steel continues to rise, India’s domestic steel manufacturers are poised to play a crucial role in both meeting national infrastructure goals and expanding their footprint in international markets. The safeguard duty represents a decisive step in enabling that vision.