The Indian Government has recently discussed implementing a recommendation for a safeguard duty (12%) on steel imports received from China and Vietnam which was discussed in DEC 2024. This is to potentially avoid the threat to the domestic steel industry as it continues to face more struggles with importing cheaper steel from foreign countries and also affects job opportunities. By implementing this law, the government is looking to minimize the threat and the problem for steel mills around the country, allowing them to perform better during all cycles.
Indian Government Proposal
The DGTR imposed 30 days to consider how it was received by the steel industry, like a trial period before implementing this officially. In December 2024, the Indian government worked on the safeguard duty, or some temporary tax, to decrease steel imports from other countries since it is affecting domestic steel mills. Also, Chinese steel has caused India’s smaller steel rolling mills to shut down, and they are likely to begin job cuts, as they are listed among other countries contemplating action to reduce imports.
Domestic Steel Industry
Indian domestic steel industry & rolling mills now facing huge imports of steel at low prices from outside India that will affect the domestic steel industry. So the government of India was planned a Safeguard Duty policy to secure the domestic steel industries and many job opportunities
The proposed 12% temporary tax for imported steel from other countries is to control the steel import flow. It is mainly to support the local steel industry, after detailed investigation, the Directorate General of Trade Remedies recommended a 12 % provisional duty in
March 2025, now it is in trial period and not open to the public. But it will only apply to imports of steel for 200 days after which it may not be a temporary tax. The general public and stakeholders give their feedback on this for a more detailed view and to take further actions.
Final Thoughts
Presently, imports of steel mainly by Countries including China, South Korea, Japan are on the rise which negatively affect the local steel industry and the share market, due in part to the dumping of steel on the market at significantly low prices, consequently on December 2024 DGTR initiated investigations and report of evidence to see if steel imported was detrimental to the local steel market, but they found that it most certainly was, and therefore DGTR recommended a temporary tax on imported steel.The temporary tax is now open to public commenting for 30 days, for the public, and stakeholders to review and submit their own comments, everyone comments will be reviewed and analyzed to finalize this decision, to be made public by DGTR.It is anticipated and will positively impact the local steel sector and the share market, the objective is to protect the current stability of the steel sector, we wait to see what final decision is and affect future operations of the steel sector.