Steel Industry Welcomes Safeguard Duty On Select Products, ISA Says This Will Help Counter Import Surge

India has increasingly been relying on imported steel, with FY25 marking the second year in a row where the country turned into a net importer of finished steel.

The provisional duty, effective for 200 days, covers five product categories such as hot rolled coils, sheets, and plates.

Source : Freepik

The Indian government's move to impose a 12 per cent provisional safeguard duty on certain imported flat steel products has been welcomed by the Indian Steel Association (ISA), which sees it as a critical step to counter the flood of cheaper steel entering India.

Imports from China, South Korea, and Japan — the primary contributors — accounted for nearly 78 per cent of total flat steel imports in FY25, according to the industry body, reported PTI.

India has increasingly been relying on imported steel, with FY25 marking the second year in a row where the country turned into a net importer of finished steel. The volume of these imports surged to a nine-year high of 9.5 million metric tonnes. The provisional duty, effective for 200 days, covers five product categories such as hot rolled coils, sheets, and plates.

DGTR Probe Leads to Government Action

The safeguard duty follows recommendations made by the Directorate General of Trade Remedies (DGTR), which  launched an investigation into the rising volume of steel imports in December 2024. According to the findings, a sharp and sustained increase in imports of non-alloy and alloy flat steel products was inflicting serious harm on domestic steel producers.

In its official notification, the Department of Revenue stated, "...the Central Government after considering the said findings of the Director General (Trade Remedies), hereby imposes...a provisional safeguard duty at the rate of twelve per cent ad valorem."

ISA noted that this move not only mirrors global trends, where several countries are tightening controls on foreign steel inflows, but also helps level the playing field for Indian manufacturers. The imposition of the safeguard duty is expected to protect local production and limit the entry of steel offered at unfairly low prices.

Duty to Spur Capacity Expansion, Says ISA

ISA President Naveen Jindal emphasised the long-term benefits of the measure, saying, “We are grateful for the government's decisive move to impose a 12 per cent safeguard duty on flat steel products, much needed to stop imports arriving at predatory prices. This support will help investors to focus with renewed vigour for a capacity build-up towards 300 million tonnes by 2030 for an Aatmanirbhar Bharat and will set the cornerstone for a Viksit Bharat.”