India is planning to introduce a temporary ‘safeguard duty’ on steel imports of up to 25% to limit the flow of cheap products from China and safeguard domestic steel producers who are suffering losses due to growing imports.

Dec 19, 2024

India is preparing to introduce a temporary “safeguard duty” on steel imports of up to 25 percent to limit the flow of cheap products from China. This was discussed during a meeting of government and industry representatives, as per a report.

The purpose of the tax imposed is to support domestic steel producers who are suffering losses due to growing imports of cheap Chinese products. This decision has come as a result of The Indian Steel Association which has asked the government to double the customs duty on steel imports to 15 percent.

To further ease the fears of small and medium-sized enterprises (MSMEs), major steel companies, including JSW Steel, Tata Steel and ArcelorMittal Nippon Steel India, have agreed to supply them with steel at reduced prices.

Small producers, which consume about 1 million tons of steel annually, will be able to save significantly if this step comes to existence by strengthening the ‘Vocal for Local’ and ‘Make in India’ initiative by the government.

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In April-October, 2024 the Indian market received a historic high of 1.7 million tons of Chinese steel, which is 35.4% more than in the same period in 2023. The two-year tax will help limit imports and stabilize the steel market, protecting domestic producers from unfair competition.