India has introduced a safeguard duty on selected steel imports for a period of three years in an effort to shield domestic manufacturers from a surge in low-priced overseas shipments. The decision follows a government review that found rising imports were putting pressure on local steel producers, especially smaller and mid-sized players.
As per the notification, the duty will be imposed at 12% in the first year, tapering to 11.5% in the second year and 11% in the third. The phased reduction is aimed at giving the domestic industry time to adjust while gradually restoring normal trade conditions.
The move is largely directed at curbing cheap steel entering the country from China, which has been a major source of imports in recent months. Imports from Vietnam and Nepal will also fall under the safeguard measure. However, certain developing countries have been exempted, and high-value or specialised steel products, including stainless steel, are not covered by the duty.
The Directorate General of Trade Remedies (DGTR), after analysing import trends and price movements, concluded that the sharp and sudden increase in steel imports posed a risk of serious injury to India’s steel sector. Industry representatives had repeatedly warned that cheaper imports were undercutting domestic prices, hurting profitability and lowering capacity utilisation.
This long-term safeguard replaces a temporary 200-day duty that was imposed earlier this year and expired in November. By extending protection over three years, the government aims to provide greater certainty to steelmakers and encourage sustained production and investment.
India is currently the world’s second-largest steel producer, and officials have stressed that maintaining a strong domestic steel base is critical for infrastructure growth, employment and economic stability. The government believes the new safeguard duty will help restore fair competition in the market while ensuring adequate supply for downstream industries.
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