India Imposes 12% Temporary Safeguard Duty on Some Steel Imports
In a move aimed at protecting domestic steel players from the surge in cheap imports, the Indian government has imposed a 12% temporary safeguard duty on certain steel products. The decision was announced on Monday and comes after a thorough investigation by the Directorate General of Trade Remedies (DGTR).
According to the government notification, the safeguard duty will be applicable for a period of 200 days and is expected to help domestic steel producers who have been facing stiff competition from cheap imports, primarily from China and Vietnam. The duty will be imposed on certain steel products, including flat steel, wire rod, and re-rolled products.
The DGTR investigation found a sharp increase in steel imports, which has led to significant damage to the domestic steel industry. The investigation also revealed that the surge in imports has resulted in a significant decline in the production and sales of steel products by domestic manufacturers.
The Indian government has taken this step to protect the domestic steel industry, which is a key sector in the country’s economy. The industry employs millions of people and is a significant contributor to the country’s GDP. The government’s decision is expected to help domestic steel producers to regain their competitiveness and protect their market share.
The imposition of the safeguard duty is also expected to help the Indian government to achieve its goal of increasing the production of domestic steel products. The government has set a target of increasing the production of steel products to 300 million tonnes by 2030. The safeguard duty is expected to help the government to achieve this target by creating a level playing field for domestic producers.
The Indian government has also taken steps to increase the production of domestic steel products by providing incentives to steel producers. The government has announced a package of incentives, including tax benefits and subsidies, to encourage steel producers to increase their production.
The imposition of the safeguard duty is also expected to help the Indian government to reduce its trade deficit. The country’s trade deficit has been widening in recent years due to the surge in imports, primarily from China and Vietnam. The safeguard duty is expected to help the government to reduce its trade deficit by reducing the volume of imports.
The Indian government’s decision to impose a safeguard duty on certain steel products is in line with the country’s trade policies. The government has been taking steps to promote domestic industries and protect them from unfair competition. The government has also been taking steps to increase the production of domestic products and reduce the country’s dependence on imports.
In conclusion, the Indian government’s decision to impose a 12% temporary safeguard duty on certain steel products is a welcome step to protect the domestic steel industry. The duty is expected to help domestic steel producers to regain their competitiveness and protect their market share. The government’s decision is also expected to help the country to achieve its goal of increasing the production of domestic steel products and reducing its trade deficit.
Source: https://www.reuters.com/world/india/india-imposes-12-temporary-tariff-some-steel-imports-2025-04-21/
