India Proposes Three-Year Safeguard Duty on Steel Imports to Bolster Domestic Industry

1 min read     Updated on 18 Aug 2025, 09:31 AM
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Shriram ShekharBy ScanX News Team
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Overview

The Directorate General of Trade Remedies (DGTR) has proposed a three-year safeguard duty on steel imports to protect domestic producers. The duty structure starts at 12% in the first year, decreasing to 11.5% and 11% in subsequent years. Major Indian steelmakers like Tata Steel, JSW Steel, SAIL, and JSPL are expected to benefit. The duty won't apply if import prices meet specified thresholds. Top exporters affected include China, Korea, Japan, Vietnam, and Nepal. The final decision on implementation rests with the finance ministry.

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*this image is generated using AI for illustrative purposes only.

The Indian steel sector is poised for a significant shift as the Directorate General of Trade Remedies (DGTR) recommends a three-year safeguard duty on steel imports. This move aims to protect domestic producers from the recent surge in steel imports that threatens to cause serious injury to the local industry.

Proposed Duty Structure

The DGTR has outlined a graduated duty structure over three years:

Year Safeguard Duty Rate
1 12.00%
2 11.50%
3 11.00%

This recommendation comes in response to a complaint filed by the Indian Steel Association and is set to replace the current 12% provisional safeguard duty, which is due to expire in September.

Beneficiaries and Exemptions

Major Indian steelmakers, including Tata Steel, JSW Steel, Steel Authority of India Limited (SAIL), and Jindal Steel and Power Limited (JSPL), are expected to benefit from this protective measure. However, the duty will not apply if import prices meet specified thresholds, which range from $675.00 per tonne for hot-rolled coils to $964.00 per tonne for color-coated steel products.

Top Exporters Affected

The proposed safeguard duty is likely to impact steel exports from China, Korea, Japan, Vietnam, and Nepal, which are currently the top exporters of the affected steel products to India.

Market Impact

The news has had a mixed impact on the steel sector's stock performance. The Nifty Metal index has seen a 2.00% decline over the past month, with individual steel stocks showing varied results.

Final Decision Pending

While the DGTR has made its recommendation, the final decision on implementing the safeguard duty rests with the finance ministry. The steel industry and market observers will be closely watching for the ministry's verdict, which could significantly influence the competitive landscape of India's steel market.

This proposed measure underscores the government's efforts to support the domestic steel industry amidst global competition and economic challenges. As the situation develops, it will be crucial to monitor how this policy, if implemented, affects both the local steel producers and the broader Indian manufacturing sector that relies on steel as a key input.

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