In a move to protect domestic steel producers, the Indian government has recommended a 12% temporary tax [1], known as a safeguard duty, on certain steel products. This measure, set to last for 200 days, is intended to curb the rising influx of steel imports impacting local industries.
Under the Ministry of Commerce, the Directorate General of Trade Remedies (DGTR) announced the proposal following an investigation into the sharp increase in steel imports. The DGTR highlighted that the surge in imports posed a serious threat to the domestic steel sector, necessitating immediate action to prevent further damage.
The Directorate General of Trade Remedies (DGTR), part of the federal trade ministry, stated in its notice that a provisional 12% safeguard duty would be suitable to address the severe harm and potential risks faced by the domestic industry. Additionally, the DGTR has called for feedback on its conclusions within 30 days, after which an oral hearing will take place before issuing a final ruling.
The safeguard duty will apply to specific steel products, excluding categories such as stainless steel and aluminum-coated steel. The DGTR has invited public comments on the findings within 30 days, after which an oral hearing will be conducted before a final decision is made.
India, the world’s second-largest crude steel producer, has seen record levels of finished steel imports from countries like China, South Korea, and Japan in recent months. The influx of cheaper steel has forced smaller domestic mills to scale down operations, raising concerns about job losses and market stability.
This temporary tax reflects India’s broader push for self-reliance in the steel sector while addressing the challenges posed by global trade dynamics. The measure is expected to stabilize the local market and provide relief to domestic producers.
Sources:
[1] Indian government recommends 12% temporary tax on some steel products https://economictimes.indiatimes.com/industry/indl-goods/svs/steel/indian-government-recommends-12-temporary-tax-on-some-steel-products/articleshow/119175084.cms?from=mdr