India To Levy 12 Per Cent Safeguard Duty On Select Steel Imports In A Bid To Protect Industry

India is preparing to introduce a 12 per cent safeguard duty on select steel imports, in a move aimed at tackling a significant rise in cheaper shipments from China and other countries, reported Reuters citing a government source familiar with the development.

The proposed tariff is expected to be implemented soon, as authorities step up efforts to protect domestic manufacturers, the report noted.

The decision comes on the heels of a recommendation made by the Directorate General of Trade Remedies (DGTR), which operates under the trade ministry. In March, the DGTR suggested the imposition of a 12 per cent duty on specific steel products for a 200-day period. This recommendation followed a probe initiated in December 2024, investigating the impact of surging imports on the local steel industry.

Imports At A Nine-Year High; Industry Concerns Grow

India, currently the world’s second-largest crude steel producer, ended the 2024-25 fiscal year as a net importer of finished steel for the second year in a row. Provisional figures show imports soared to a nine-year high of 9.5 million metric tonne.

A large chunk of these imports—78 per cent—originated from China, South Korea, and Japan. During the first 10 months of the fiscal year ended March 2025, shipments from these three countries reached record levels. This influx  posed a major challenge for domestic players, especially smaller steel mills, some of which have had to scale back production and consider job cuts.

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Decision Expected Soon Amid Industry Pressure

Quoting the source, the news agency reported, “There is clarity that the duty would be 12 per cent and a decision is expected at the earliest.” While the Ministry of Finance, responsible for the final call, has not released a comment yet, the report pointed out that the urgency of the issue suggested a formal announcement may not be far off.

India joins a growing number of nations exploring measures to counteract steel dumping. Industry stakeholders, including leading names like JSW Steel, Tata Steel, Steel Authority of India, and ArcelorMittal Nippon Steel India, have voiced concerns and pushed for immediate action to prevent further strain on the sector.