Japan has requested India to exempt it from a proposed safeguard duty that India is considering to mitigate the surge in steel imports. The plea, which aims to protect the supply of specialized steel alloys crucial for Indian industries, was made during the third India-Japan Steel Dialogue in New Delhi this week.
The investigation into whether India should impose a temporary tax on steel imports, known as a safeguard duty, began in December. India’s Minister of Steel H. D. Kumaraswamy confirmed last month that the probe was ongoing. The Japanese delegation, comprising government and industry officials, argued that their steel products are essential for India’s demand for high-performance steel, which cannot be adequately met by domestic production in terms of quantity and quality.
The presentation made by the Japanese delegation highlighted the necessity of Japanese steel for Indian consumers and requested that Japan be excluded from any such tariffs. The Japanese embassy in India and the Japan Iron and Steel Federation have previously reached out to India’s trade and steel ministries, urging them not to impose a temporary tax on steel imports, citing letters and documents referenced by a source.
The push for country-specific curbs comes amid concerns overcapacity in China and the ASEAN region, which has led to increased imports into India. Cheap imports, particularly from China, have pressured smaller Indian steel mills, leading to reduced operations and potential job cuts, as reported in December.
India’s finished steel imports have reached a six-year high in the first nine months of the fiscal year starting in April 2024, with imports from Japan hitting at least a seven-year high and nearly doubling from the previous year. Japan, China, and South Korea together constitute 79% of India’s overall finished steel imports during the April-December period, with Japan alone accounting for nearly a quarter.