Tata Steel and JSW Steel shares rallied sharply following the government's announcement of an extended three-year safeguard duty on steel imports from select countries. Tata Steel closed 2.35% higher at ₹179.93, gaining ₹4.13 from the previous close, after touching an intraday high of ₹181.40. JSW Steel ended 4.88% higher at ₹1,165.90, gaining ₹54.30 from the previous close.

Extended Safeguard Duty Framework Provides Long-Term Protection

The Finance Ministry has imposed a comprehensive safeguard duty structure on steel imports, extending protection for domestic steelmakers through a phased approach. The duty targets non-alloy and alloy steel flat products, including hot rolled coils, cold rolled sheets, and plate mill products.

This follows a temporary 200-day tariff of 12.00% imposed in April 2025, which expired on November 6. The Directorate General of Trade Remedies recommended the extended duty after finding evidence of a "recent, sudden, sharp and significant increase in imports" causing injury to the domestic industry.

Strong Market Response Reflects Investor Confidence

The market response demonstrates strong investor confidence in the protective measures. Trading volumes reflected heightened interest, with Tata Steel recording 508.97 lakh shares worth ₹916.61 crore, while JSW Steel saw 58.82 lakh shares change hands valued at ₹682.80 crore on the NSE.

Competitive Positioning Strengthened Against Imports

Market analysts expect the safeguard duty to significantly improve the competitive dynamics for domestic steel producers. The measure makes imported steel up to 12.00% costlier than domestically produced steel, which is currently priced at par with imports. This pricing protection removes pressure from cheap steel dumping and creates a more favorable operating environment for Indian steelmakers.

Global Trade Protection Trend Supports Domestic Industry

The safeguard duty implementation aligns with broader global efforts to protect domestic steel industries amid trade friction over Chinese steel exports. The move comes in the context of global trade tensions, including US President Donald Trump's steel tariffs, highlighting the international nature of steel trade protection measures.

The extended safeguard duty framework provides domestic steelmakers with sustained protection while allowing market adjustment over the three-year implementation period.

In a significant move towards sustainable manufacturing, India's steel industry may soon receive government support for eco-friendly production methods. The Steel Secretary has revealed that the government is actively considering an incentive proposal aimed at promoting green steel production, underlining the country's commitment to environmentally responsible industrial practices.

Government Initiative for Sustainable Steel

The announcement comes as part of India's broader efforts to align its industrial growth with environmental sustainability goals. Green steel production, which typically involves using cleaner energy sources and more efficient processes to reduce carbon emissions, has been gaining traction globally as countries strive to meet climate targets.

Potential Impact on the Indian Steel Sector

This initiative could have far-reaching implications for India's steel industry, which is one of the largest in the world. By incentivizing green steel production, the government aims to:

• Reduce the carbon footprint of the steel sector
• Enhance the competitiveness of Indian steel in global markets
• Encourage innovation in sustainable manufacturing technologies
• Align the industry with international environmental standards

Challenges and Opportunities

While the details of the incentive proposal are yet to be revealed, the move is likely to present both challenges and opportunities for steel manufacturers:

Challenges

• Initial high costs of transitioning to greener technologies
• Need for significant infrastructure upgrades
• Potential short-term impact on production costs

Opportunities

• Long-term cost savings through energy efficiency
• Access to growing markets for green steel
• Improved corporate image and environmental compliance

Industry Response

The steel industry's response to this initiative will be crucial. Major players in the sector may need to reassess their production strategies and investment plans to align with the government's green steel push.

As the proposal moves through the consideration phase, stakeholders across the steel value chain will be keenly watching for further details on the nature and extent of the incentives. The success of this initiative could potentially set a precedent for other heavy industries in India, marking a significant step towards a more sustainable industrial landscape.

The government's move reflects a growing global trend towards decarbonization in steel production, with several countries already implementing or considering similar measures. As this story develops, it will be important to monitor how India's steel sector adapts to these potential changes and how it might reshape the country's position in the global steel market.