India’s federal government has implemented a 12 per cent provisional safeguard duty on selected steel imports-primarily hot-rolled coils (HRC), cold-rolled coils and sheets, plates, metallic-coated coils, and colour-coated coils, effective for 200 days from April 21, 2025. The decision responds to a significant uptick in low-cost imports from countries including China and Vietnam, which domestic producers argue is causing “serious injury” to India’s steel sector.
The Directorate General of Trade Remedies (DGTR) initiated its investigation in December 2024 following complaints from domestic steelmakers such as JSW Steel, Tata Steel, AM/NS, and SAIL. In March 2025, the DGTR recommended imposing a 12 per cent duty for 200 days pending further review. The final notification, issued by the Finance Ministry on April 21, confirms implementation unless revoked or amended earlier.
Threshold-based exemptions mean the safeguard duty won’t apply if import prices meet or exceed predetermined CIF values, such as $675/tonne for hot-rolled products and up to $964/tonne for colour-coated sheets.
Industry reactions indicate both support and concern. Domestic steelmakers expect improved pricing and margins-Nomura and Yieh suggest domestic prices could increase by ₹2,000–₹2,500/tonne, with imported steel now ₹4,000/tonne more expensive compared to local supplies. In the stock market, shares of JSW Steel, Tata Steel, and SAIL rose by 3–4 per cent following the DGTR findings.
However, trade bodies like the Global Trade Research Initiative warn the duty may significantly raise input costs-by 8–10 per cent-affecting MSMEs in construction equipment, pipe fabrication, and engineering
This move joins a broader protectionist agenda, including updated domestic procurement policies favoring Indian mills. Meanwhile, policymakers are reportedly considering increasing the safeguard duty to 24 per cent to further deter import surges.
This measure marks a decisive pivot in India’s steel trade policy-balancing protection for local producers and cushioning users, amid continued volatility in global steel markets.
