India is preparing to impose a temporary safeguard duty of 12 per cent on select steel imports, mainly from China, South Korea and Japan, to counter the impact of surging low-cost shipments. The decision follows an assessment by trade authorities, which indicated that the influx of cheaper steel has begun to harm domestic producers by suppressing prices and threatening profitability.
Imports of finished steel reached a nine-year high in the last fiscal year, crossing 9.5 million tonnes, a significant portion of which originated from China. Local steelmakers, including JSW Steel, Tata Steel, Steel Authority of India and ArcelorMittal Nippon Steel India, have raised concerns over the steep increase in inbound volumes, warning that domestic output could be displaced unless corrective action is taken.
The safeguard duty is intended as a short-term measure to restore balance between domestic supply and external competition. Officials have indicated that the tariff will apply across specific product categories most affected by under-priced imports. Industry analysts believe the move could provide relief to Indian mills, which have been facing pressure to maintain margins amid falling global prices and rising raw material costs.
Alongside the safeguard duty, the stainless-steel sector has called for the imposition of anti-dumping duties on certain grades, arguing that predatory pricing practices have distorted the market and undermined long-term investment in capacity. Stakeholders stress that without strong policy interventions, the sector risks losing its competitive edge at a time when demand from construction, infrastructure and manufacturing remains robust.
The proposed measures reflect a wider push by policymakers to safeguard strategic industries from volatile international trade dynamics. If implemented effectively, they could stabilise domestic prices and strengthen the resilience of India’s steel sector against global uncertainties.
