India’s Commerce Ministry has suggested imposing a 12% safeguard duty on certain steel products to shield the country’s domestic industry from a flood of low-cost imports, particularly from countries like China, prompted by tariffs introduced by the U.S.
The Directorate General of Trade Remedies, the trade investigations wing of the Commerce Ministry, has proposed implementing the duties for a duration of 200 days, as stated in a preliminary decision released late on Tuesday.
Safeguard measures are implemented during unexpected surges in imports that risk the domestic industry, the ministry said. The final decision will be declared after 30 days of consultations and public hearings. The measures seek to protect the domestic industry from rising imports, with trade diversion caused by U.S. policies being a key factor behind the surge.
The ministry warned delaying the implementation of provisional safeguard measures could cause irreversible damage to the domestic industry, potentially leading to capacity shutdowns and the abandonment of planned investments for capacity expansion. The Directorate further emphasized the necessity for the swift implementation of measures due to urgent circumstances.
Although China’s steelmakers have cut production, the country still produces considerably more steel than it requires domestically, with exports reaching a nine-year peak in 2024. India also highlighted the impact of global trade measures, weakening demand, and the growing steel capacity across Asia.
In December, the DGTR launched an investigation into imports of non-alloy and alloy steel flat products used in industries like construction, automobiles, and furniture, following a complaint from the Indian Steel Association about a sharp rise in imports disrupting the domestic industry.
India’s steel production has expanded notably over the past decade, though it accounted for only 15% of China’s output last year. If implemented, the proposed duty would provide some relief to the domestic steel industry.
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