News Brief
India Mulls Imposing Up To 25 Per Cent "Safeguard Duty" To Curb Cheap Chinese Steel Imports: Report
Representative image (Website/JSW Steel)
India is likely to introduce a "safeguard duty" of up to 25 per cent on steel imports to curb the influx of cheap steel from China, news agency Reuters reported citing industry and government sources.
The proposal, aimed at protecting domestic steelmakers, gained widespread support during a meeting chaired by Commerce Minister Piyush Goyal on Tuesday (17 December).
Initially, small industries opposed the move, fearing higher steel prices.
However, they withdrew their objections after assurances that they would receive steel at reduced prices.
The "safeguard duty" will be imposed after an investigation, which will likely be completed within a month, according an industry official.
“MSMEs (micro, small, and medium enterprises) registered with the government will receive raw materials at FOB (free on board) export prices,” said Pankaj Chadha, chairman of the Engineering Export Promotion Council of India (EEPC), after the meeting.
The Directorate General of Trade Remedies is currently investigating whether cheap steel imports from China have caused harm to domestic producers.
Small manufacturers, who consume about 1 million metric tons of steel annually, are expected to benefit from the arrangement, with prices approximately 20 per cent lower than market rates, Chadha added.
India's major steel producers, including JSW Steel, Tata Steel, and ArcelorMittal Nippon Steel India, have raised concerns about the surge in cheaper imports, particularly from China.
The steel ministry has proposed a 25 per cent safeguard duty on flat-steel products for two years to address the issue.
India, the world's second-largest crude steel producer, became a net importer of steel in the financial year ending 31 March 2024.
Steel imports surged to record levels during the first seven months of the current financial year.
A government official noted that assurances of affordable steel supplies for small industries had removed a "major roadblock" for imposing the safeguard duty.
