The indian government is soon going to impose a temporary tariff (safeguard duty) of 12% on steel imports. According to a Reuters report, the purpose of this decision is to stop cheap steel imports from china and other countries, which has become a big challenge for the country's domestic steel mills for the last few years. This tariff is being called a "safeguard duty", which was recommended to be implemented by the Directorate General of Trade Remedies (DGTR). This duty can remain in force for 200 days.
What do the figures say?
Despite being the world's second largest crude steel producer, india has become a net importer of finished steel for the second consecutive year in 2024-25. According to government data, India's finished steel imports reached 9.5 million metric tonnes last year, which is the highest in 9 years. china, south korea and japan contributed 78% to India's total steel imports. Due to this increasing import, small steel companies of the country have been forced to reduce production and cut jobs.
Effect of DGTR's investigation and recommendation
In december last year, DGTR started an investigation to find out whether cheap steel imports are harming domestic companies. The investigation revealed that the existence of domestic industries is in danger due to the flood of foreign steel. After this, in March, DGTR recommended imposing a 12% tariff. This recommendation is now under consideration with the Finance Ministry and according to sources, it can be implemented soon.
Big steel companies will get relief from tariff
The country's major steel manufacturing companies such as JSW Steel, Tata Steel, Steel Authority of india (SAIL) and ArcelorMittal Nippon Steel India had constantly demanded control over cheap imports from the government. These companies say that if these tariffs were not imposed, the domestic steel industry would have suffered huge losses and the jobs of millions of people would have been in danger.
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