The Directorate General of Trade Remedies has recommended the imposition of import tariffs on certain steel products in a move designed to protect the domestic industry from rising overseas competition. The proposal suggests duties beginning at 12 per cent, gradually reducing to 11 per cent over a three-year period.
The measure is aimed at supporting the domestic steel sector, which plays a pivotal role in meeting India’s ambitious infrastructure goals. With major national projects in roads, bridges, railways and energy facilities driving demand for steel, policymakers are keen to ensure that local producers remain competitive and capable of meeting rising requirements.
According to trade experts, unchecked imports have the potential to undermine domestic production by exerting downward pressure on prices, thereby threatening margins and long-term investment plans of Indian steelmakers. By introducing tariffs, the government seeks to create a level playing field that will allow producers to maintain output, expand capacity, and invest in new technologies aligned with sustainability and efficiency.
Industry representatives have welcomed the recommendation, noting that predictable demand from infrastructure projects requires a stable and viable steel sector. They argue that tariffs will not only provide immediate relief from pricing pressures but also encourage firms to commit to long-term capacity expansion and employment generation.
At the same time, economists caution that such measures must be carefully balanced to avoid cost escalation in downstream industries that rely on steel as a primary input. Effective monitoring and phased reductions in tariff levels are seen as important to prevent adverse impacts on construction, manufacturing and consumer prices.
Overall, the proposed safeguard reflects India’s broader strategy to align industrial policy with its infrastructure ambitions, ensuring that domestic steelmakers remain at the forefront of supporting national development.
