New Delhi: India has imposed a safeguard duty on select steel products for a period of three years in an effort to curb the inflow of cheap imports and protect the domestic steel industry. The move follows growing concern over a sharp rise in low priced steel entering the country, particularly from China and other neighbouring nations.
Under the new framework, the import duty will be levied in a phased manner. The rate has been fixed at 12 per cent in the first year, reduced to 11.5 per cent in the second year, and further lowered to 11 per cent in the third year. The decision has been notified through an official order and comes after detailed assessment of import trends and their impact on local producers.
The safeguard duty will apply to imports from countries such as China, Vietnam and Nepal. However, shipments from certain developing nations have been exempted under existing trade provisions. The measure also excludes specialty steel products, including stainless steel, which are not covered under the new tariff structure.
The government has maintained that unchecked imports of low cost and sub standard steel pose a serious threat to India’s domestic manufacturing base. Officials have repeatedly stressed the need to ensure that local producers are not harmed by unfair pricing practices or sudden import surges that distort the market.
Earlier this year, a temporary safeguard duty of 12 per cent was imposed for 200 days as an interim measure. Following this, a detailed investigation found a recent, sharp and significant increase in steel imports that was causing and threatening to cause serious injury to domestic manufacturers. Based on these findings, a longer three year duty was recommended and subsequently approved.
The decision also comes amid rising global trade tensions in the steel sector. Recent tariff actions by the United States have triggered increased scrutiny of Chinese steel exports worldwide, prompting several countries to introduce anti dumping measures to shield their industries.
With the new tariff regime, India aims to restore balance in the steel market, ensure fair competition and provide stability to domestic producers while continuing to meet demand through regulated imports.
