India has imposed a three-year import duty of 11-12 per cent on some steel products, as per an order issued by the finance ministry, in a move seen as an attempt to curb the inflow of low-priced steel from China.
As per the order published in the official government gazette, the tariff will be set at 12 per cent in the first year. It will then be reduced to 11.5 per cent in the second year and further lowered to 11 per cent in the third year.
Behind India’s move
India has been facing a rise in cheap steel imports from China, which has raised concerns over dumping practices and put pressure on local steel manufacturers.
The “recent, sudden, sharp, and significant increase in imports of subject goods into India has caused and threatens to cause serious injury to the domestic industry/producers of subject goods”, the order said.
This, it added, has necessitated the “imposition of provisional safeguard duty on imports of the subject goods into India”.
Notably, the decision spares imports from some developing nations. However, supplies from China, Vietnam and Nepal will be subject to the duty. The tariff will also not cover specialised steel items, including stainless steel.
Earlier in April, the government had imposed an interim safeguard duty of 12 per cent for a period of 200 days.
‘Safeguard duty’ on steel imports
The order said that the Centre, after reviewing the findings submitted by the Director General (Trade Remedies), has decided to levy a safeguard duty on steel products imported into India at the rates listed below:
- 12 per cent ad valorem for imports made between April 21, 2025, and April 20, 2026;
- 11.5 per cent ad valorem for imports made between April 21, 2026, and April 20, 2027;
- 11 per cent ad valorem for imports made between April 21, 2027, and April 20, 2028.