India’s Directorate General of Trade Remedies (DGTR) has recommended the introduction of a three-year safeguard duty on selected steel imports in an effort to stabilise the domestic market and protect local producers from rising import pressures.
Under the proposal, imports of specified steel products would attract a tariff of 12 per cent in the first year, gradually reducing to 11.5 per cent in the second year and 11 per cent in the third. The staggered structure is intended to provide Indian manufacturers with breathing space to adjust capacity and pricing while limiting excessive dependence on overseas supplies.
Industry analysts note that the measure is particularly aimed at countering large import volumes from China, which have exerted downward pressure on domestic prices. By introducing a phased duty, policymakers seek to create a level playing field for Indian steelmakers, enabling them to compete more effectively while sustaining investment and production growth.
The safeguard duty proposal comes at a time when India’s steel sector is experiencing strong demand, driven by government infrastructure projects, urban development, and private sector expansion. Protecting local producers is viewed as critical to meeting long-term national targets under the National Steel Policy, which emphasises self-reliance, capacity expansion, and reduced import dependency.
While the move has been welcomed by domestic steel companies, some observers caution that higher tariffs could lead to cost escalations in sectors such as construction and manufacturing, where steel is a key input. Balancing industry protection with consumer affordability will therefore remain a central consideration as the government evaluates the recommendation.
If approved, the duty is expected to provide a significant boost to domestic steelmakers while ensuring market stability against global volatility.
