The Directorate General of Trade Remedies (DGTR) has imposed a 12% safeguard duty on steel imports after concluding its investigation into rising inflows from countries such as China. The probe, launched in December 2024 following complaints by major producers including ArcelorMittal Nippon Steel (AMNS), JSW Steel, Jindal Steel & Power, and SAIL, covered a wide range of products such as hot-rolled, cold-rolled, metallic-coated, and colour-coated steel.
DGTR found that imports rose “recently, suddenly, sharply and significantly” during October 2023–September 2024, with Chinese exports alone touching 110.7 million MT in 2024 — a 25% surge from 2023. Much of this oversupply, it said, was diverted to India. Imported hot-rolled coils landed at USD 450 per MT in May 2025, nearly USD 87 per MT cheaper than Indian costs even after duties. Domestic steelmakers’ profit before tax fell 76%, which DGTR classified as “serious injury.”
However, the move has drawn sharp criticism from over 250 stakeholders, including automakers, electronics firms, and industry bodies. Tata Motors, Maruti Suzuki, Hyundai, Toyota Kirloskar, LG, Samsung, Whirlpool, ABB, Siemens, Havells, Crompton Greaves, and L&T warned that the duty would raise input costs, reduce export competitiveness, and restrict access to specialised steel grades not manufactured locally.
Industry associations such as ACMA, EEPC, and IEEMA echoed these concerns, arguing that import volumes were merely returning to pre-COVID levels and questioning DGTR’s choice of base year.
The Global Trade Research Initiative (GTRI) also opposed the safeguard duty, pointing out that India remains a net steel importer, with FY2024–25 demand estimated at 137.82 MT against domestic output of 132.89 MT. It noted that steelmakers continue to post healthy margins — Tata Steel reported 21% EBITDA in India, while SAIL stood at 11.6%. According to GTRI, the duty risks creating cartel-like conditions when combined with Quality Control Orders, ultimately protecting a few large steelmakers at the expense of India’s wider manufacturing ecosystem.
