The Indian government is thinking about adding a 25% duty on steel imports to help protect the local steel industry from cheap imports. Union Steel Minister H D Kumaraswamy said that the proposal is moving forward and discussions are ongoing.
“The process is going,” Kumaraswamy told PTI at an event. The ministry wants this duty to give relief to Indian steelmakers struggling because of low-cost imports.
On December 2, the steel ministry officially suggested the 25% duty in a meeting with the commerce department. Both Kumaraswamy and Commerce Minister Piyush Goyal attended the meeting. The final decision will be made by the finance ministry based on recommendations from the commerce department.
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Indian steel companies have complained about the rise in cheap steel imports from other countries which is hurting their business. Steel Secretary Sandeep Poundrik pointed out that over 60% of steel imports come from Free Trade Agreement (FTA) countries where no duty is charged.
This means the proposed duty may not fully stop such imports. “There is a genuine problem, and the ministry is aware of that,” Poundrik said.
According to Daily Excelsior, research by BigMint, India imported 5.51 million tonnes (MnT) of steel during April-September 2024-25, a big jump from 3.66 MnT in the same period in 2023-24. Imports from China almost doubled, going from 1.02 MnT to 1.85 MnT during the same time.
These rising imports especially from countries like China that are not part of FTAs have led the ministry to push for the safeguard duty.
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If approved, the safeguard duty could:
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