India to Impose Temporary 25% Safeguard Duty on Steel Imports

ENA Sectors 2024-12-18 15:07:41 New Delhi, Dec 18 (KNN) India is poised to impose a safeguard duty of up to 25 per cent on steel imports to protect domestic steelmakers from the influx of cheap Chinese steel, according to industry and government sources. The move comes amid record-high steel imports and growing concerns from major producers like JSW Steel, Tata Steel, and ArcelorMittal Nippon Steel India. The proposal gained traction at a meeting chaired by Commerce Minister Piyush Goyal on Tuesday, where initial opposition from small industries was resolved. The government assured Micro, Small, and Medium Enterprises (MSMEs) that they would not face price hikes. Large steelmakers will supply MSMEs with steel at reduced prices, ensuring affordability, said an industry official present at the meeting. India's Directorate General of Trade Remedies is currently investigating whether cheap imports from China have adversely affected the domestic steel industry. The safeguard duty is expected to take effect following the investigation, likely to conclude within a month. To support MSMEs, which collectively consume approximately 1 million metric tons of steel annually, the government plans to provide raw materials at free on board (FOB) export prices. Pankaj Chadha, chairman of the Engineering Export Promotion Council of India (EEPC), stated that this arrangement would lower prices by around 20 per cent for small manufacturers, safeguarding their competitiveness. India, the world's second-largest crude steel producer, became a net importer of steel in the fiscal year ending March 31, 2024, with imports soaring to record levels in the first seven months of the current financial year. Industry officials blame this surge on the aggressive pricing strategies of Chinese exporters, which have undercut domestic producers. The steel ministry recently proposed a 25 per cent safeguard duty on flat-steel products for two years. A government source described the assurances provided to MSMEs as a major roadblock removed, paving the way for the tax's implementation. While the commerce ministry declined to comment, the measure is expected to balance the interests of major steelmakers and small industries, ensuring fair competition and domestic industry protection. (KNN Bureau) 40296 https://knnindia.co.in/news/newsdetails/sectors/india-to-impose-temporary-25-safeguard-duty-on-steel-imports 2024-12-18 15:07:41 knnindia.co.in India to Impose Temporary 25% Safeguard Duty on Steel Imports