New Delhi, Dec 31 (PTI) India has imposed safeguard duty on certain steel products for three years to protect domestic players from significant increase in cheap imports.
According to a notification of
the finance ministry, in the first year, a 12 per cent duty will be imposed in the first year (21st April, 2025 to 20th April, 2026).
The rate will be reduced to 11.5 per cent in the second year (21st April, 2026 to 20th April, 2027); and further to 11 per cent in the third year (21st April, 2027 to 20th April, 2028).
The duty was imposed following a recommendation for the same by the Directorate General of Trade Remedies (DGTR).
Earlier in April this year, the government had imposed a 12 per cent provisional safeguard duty for 200 days on these steel products.
Last year in December, the DGTR started the investigation into the sudden surge in imports of ‘Non-Alloy and Alloy Steel Flat Products’, used in various industries, including fabrication, pipe making, construction, capital goods, auto, tractors, bicycles, and electrical panels.
The investigations were conducted following a complaint from the Indian Steel Association on behalf of its members, including ArcelorMittal Nippon Steel India; AMNS Khopoli; JSW Steel; JSW Steel Coated Products; Bhushan Power and Steel; Jindal Steel and Power; and Steel Authority of India Ltd.
Import of these products increased from 2.293 million tonnes during 2021-22 to 6.612 million tonnes during the period of investigation (October 2023 to September 2024, and the three preceding fiscal years - 2021-24).
The imports have increased from countries, including China, Japan, Korea, and Vietnam.
The DGTR in its probe had noted that the objective of the duty is to protect the Indian domestic industry against the surge of imports.
While some big domestic steel makers were advocating for imposition of the duty, the user industry is strongly against it as the duty would push raw material prices, impacting their competitiveness.
MSME exporters from the engineering sector had stated that any move to impose additional duties on steel imports would make domestic products uncompetitive and impact the country’s outbound shipments from the sector. PTI RR DR
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