India has announced a three-year safeguard duty on select steel imports, aiming to protect domestic manufacturers from a surge in low-priced overseas supplies. The move is expected to significantly impact imports from China, Vietnam, and Nepal, while exempting certain developing nations and specialised steel products.
Details of the Steel Import Duty
According to a notification issued by the Ministry of Finance and published in the official government gazette, the safeguard duty will be applied in a phased manner:
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12% on imports from April 21, 2025, to April 20, 2026
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11.5% from April 21, 2026, to April 20, 2027
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11% from April 21, 2027, to April 20, 2028
The duty applies to specific categories of steel products and is calculated on an ad valorem basis.
Why India Took This Step
India has witnessed a sharp and sudden rise in low-cost steel imports, particularly from China. Authorities have raised concerns that these imports may involve dumping practices, which can harm domestic producers and distort fair competition.
In its order, the government stated that the increase in imports has caused and threatens to cause serious injury to India’s steel industry. As a result, the safeguard duty has been introduced to ensure a level playing field and support long-term industry stability.
Products and Countries Exempted
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Imports from some developing countries are exempt under international trade norms
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Specialised steel products, including stainless steel, are not covered by the duty
Background
Earlier in April 2025, the government had imposed a temporary safeguard duty of 12% for 200 days. The new decision follows a detailed review by the Director General of Trade Remedies, which recommended longer-term protective measures.
What This Means Going Forward
The decision is expected to:
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Support domestic steel producers
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Reduce dependence on cheap imports
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Encourage fair trade practices
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Strengthen India’s manufacturing sector under its industrial growth goals
