India’s trade remedies authority has recommended the imposition of a safeguard duty on certain categories of steel imports originating from Vietnam. The proposed measure, set to be implemented over a three-year period, is aimed at shielding domestic steelmakers from a surge of low-priced imports that threaten the competitiveness of the domestic industry.
According to the proposal, the duty will begin at 12 per cent in the first year before tapering to 11 per cent by the third year. The phased approach is designed to give the domestic steel industry sufficient time to stabilise and adapt while gradually reducing reliance on protective tariffs.
The recommendation comes in response to growing concerns raised by Indian steel producers such as Tata Steel, JSW Steel and the Steel Authority of India Limited (SAIL). These companies have argued that cheaper imports from Vietnam are undercutting market prices, leading to margin pressures and jeopardising planned investments in capacity expansion.
Industry analysts suggest that the safeguard duty will provide a temporary cushion for Indian manufacturers, enabling them to strengthen operations, improve efficiency and address global competition. However, they also caution that such measures should be complemented with long-term strategies, including technology upgrades, cost rationalisation and diversification into value-added products.
Vietnam has emerged as a significant supplier of hot-rolled and cold-rolled steel to India in recent years, benefiting from competitive pricing and strong export capacity. The proposed duty, if notified, is expected to moderate import volumes and stabilise domestic prices, thereby offering relief to local producers while maintaining a balance with downstream industries reliant on steel as a key input.
The safeguard duty recommendation is now pending final approval by the government, which will weigh industry demands against broader trade and economic considerations.
