India is considering extending an import safeguard duty on select steel products to counter the impact of cheaper shipments—primarily from China—according to a source with direct knowledge of the discussions.
The Directorate General of Trade Remedies (DGTR) had in August, recommended a three-year tariff of 11–12% on certain steel categories as part of its final findings. The proposal is currently under review by the Ministry of Finance, the source said, declining to be identified due to the sensitivity of the matter.
The government had earlier imposed a temporary 12% safeguard duty for 200 days in April, which expired earlier this month.
India, the world’s second-largest crude steel producer, has seen its finished steel imports decline 34.1% year-on-year in the first seven months of the current financial year. South Korea remained the top exporter to India during this period, shipping 1.4 million tonnes, followed by China, Japan and Russia.
The source noted that Chinese steel imports pose a particular concern due to significantly lower prices, leaving India “vulnerable”.
China’s steel output is expected to fall below 1 billion tonnes this year for the first time in six years, aligning with Beijing’s efforts to curb production. In late October, the Chinese government proposed a more stringent steel capacity swap plan aimed at cutting excess output and rebalancing supply-demand conditions in the domestic and global markets.
India’s Ministry of Finance has not yet responded to Reuters’ request for comment on the possible extension of the safeguard duty.