Tue Apr 22 02:06:34 UTC 2025: ## India Imposes Safeguard Duty on Steel Imports to Protect Domestic Industry

**New Delhi, April 22, 2025** – The Indian government announced a 200-day, 12% provisional safeguard duty on five categories of steel products, effective immediately. This move aims to shield domestic steel producers from a surge in imports, particularly from China, Japan, South Korea, and Vietnam.

The decision follows a recommendation from the Directorate General of Trade Remedies (DGTR), which investigated a sharp increase in steel imports from October 2023 to September 2024. Imports rose from 2.293 million tonnes in 2021-22 to 6.612 million tonnes during the investigation period. The DGTR cited excess capacity in exporting countries and slowing global demand as contributing factors.

The duty applies to hot-rolled coils, sheets, and plates; hot-rolled plate mill plates; cold-rolled coils and sheets; metallic coated steel coils and sheets; and colour-coated coils and sheets. It will only be levied on imports priced below $675 to $964 per tonne (CIF).

The move has been welcomed by the Indian Steel Association and Steel Minister H.D. Kumaraswamy, who stated it will provide relief to domestic producers, particularly SMEs. However, the Federation of Indian Export Organisations (FIEO) and some MSME exporters voiced concerns, arguing the duty will raise steel prices (potentially to ₹6,000 per tonne from ₹5,400), impacting the competitiveness of Indian engineering exports, especially given existing US tariffs on steel and aluminum. FIEO President S.C. Ralhan noted the duty primarily benefits only 5-6 large domestic companies.

The safeguard duty is a World Trade Organisation-approved measure used to protect domestic industries from sudden import surges that threaten serious injury. Unlike anti-dumping duties, it applies uniformly to all importing countries.

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