Govt Considers Steep Tariffs On Chinese Steel Imports Under Industry Pressure

New Delhi, Feb 13 (KNN) India is contemplating the implementation of temporary tariffs ranging from 15 per cent to 25 per cent on Chinese steel imports within the next six months, according to Steel Minister H.D. Kumaraswamy.

The proposed measure comes in response to what officials describe as mounting pressure on domestic steel manufacturers from low-cost imports.

In an interview with Reuters, Kumaraswamy emphasised the gravity of the situation, stating that Chinese steel imports, which he suggested are often supported by unfair trade practices, present a significant threat to Indian producers.

The minister reaffirmed the government's dedication to safeguarding the interests of the domestic steel industry.

The potential tariffs, known in India as safeguard duties, have been under official investigation since December and could remain in effect for up to two years if enacted.

Kumaraswamy indicated that the proposed duty range is specifically designed to counter unfair competition and establish equitable market conditions.

The move comes at a critical juncture as India transitioned to becoming a net importer of finished steel during the fiscal year ending March 2024, with Chinese imports reaching unprecedented levels between April and December.

Despite India's position as the world's fastest-growing major economy, characterised by strong domestic demand and increased infrastructure investment, local steel prices have experienced a notable decline, highlighting the market pressures facing domestic producers.

(KNN Bureau)