India Imposes Three-Year Safeguard Duty on Steel Imports, China Among Key Countries Affected

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:

• 12% on imports from April 21, 2025, to April 20, 2026

• 11.5% from April 21, 2026, to April 20, 2027

• 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

• Imports from some developing countries are exempt under international trade norms

• 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:

• Support domestic steel producers

• Reduce dependence on cheap imports

• Encourage fair trade practices

• Strengthen India’s manufacturing sector under its industrial growth goals