India Proposes 12% Safeguard Duty on Steel Imports

gavel Government's Move to Protect Domestic Steel Industry

India is planning to impose a 12% safeguard duty on steel imports to protect its domestic industry from an influx of cheap foreign steel. The Ministry of Steel has proposed this measure in response to concerns raised by local steel manufacturers about unfair competition from countries like China, Japan, and South Korea.

help_outline Why is India Imposing This Duty?

trending_down Increase in Cheap Imports: Indian steelmakers have reported a surge in imports at lower prices, mainly from China and Vietnam, threatening domestic producers.

bar_chart Global Steel Price Fluctuations: Due to oversupply in international markets, foreign steel is being dumped into India at a price lower than the production cost.

work_outline Protecting Domestic Jobs: Many Indian steel companies have warned of job cuts if the government does not intervene, as declining sales are impacting employment in the sector.

groups Who Will Be Affected?

thumb_up Winners: Indian steel producers like Tata Steel, JSW Steel, and SAIL will benefit from reduced foreign competition.

thumb_down Losers: Industries relying on imported steel—such as automobile and infrastructure companies—may face increased costs, potentially leading to higher prices for consumers.

public International Trade Impact

flag China & South Korea Oppose the Move: India’s major steel suppliers may file complaints with the World Trade Organization (WTO), arguing that such duties are trade barriers.

build Boost for "Make in India": The move aligns with India’s push for self-reliance in manufacturing and infrastructure, reducing dependence on foreign steel.

schedule What’s Next?

hourglass_empty The proposal is currently under review by the Finance Ministry and is expected to be implemented in the coming months if approved.

campaign Steel-consuming industries are lobbying for a lower tariff, while domestic steelmakers demand even stronger protection.

This 12% safeguard duty could reshape India’s steel market, boosting local production while increasing costs for sectors dependent on imported steel.