3 min
03-April-2025
In April 2025, the Indian government imposed a 12% safeguard duty on specific steel imports for a period of 200 days. This measure came amid rising concerns over a sudden spike in low-cost steel inflows, particularly from countries like China, South Korea, and Japan. The move, based on recommendations from the Directorate General of Trade Remedies (DGTR), aims to shield domestic producers from potential injury caused by unfair pricing. The announcement triggered immediate market reactions, with metal stocks witnessing a positive rally. While the duty is temporary, its impact is expected to ripple across trade, production, and investment decisions within the Indian steel sector. This article explores the reasons behind the tariff, its implementation, and the broader implications for industry stakeholders.
Frequently asked questions
What is the purpose of India's 12% safeguard duty on steel imports?
The 12% safeguard duty aims to protect Indian steel manufacturers from injury caused by a surge in cheap imports. It serves to maintain fair competition, curb dumping practices, and support the growth and financial stability of the domestic steel sector amid global market imbalances.
Which steel products are affected by the new duty?
The safeguard duty applies specifically to hot-rolled and cold-rolled flat steel products imported into India. These include both alloy and non-alloy varieties, which are commonly used in construction, automotive, and infrastructure sectors. The duty excludes imports from certain developing countries and applies only above a specific import threshold.
How has the stock market reacted to the new steel import duty?
The stock market responded positively to the announcement, with shares of Tata Steel, JSW Steel, and SAIL rising up to 3%. The Nifty Metal Index also saw upward momentum. Investors viewed the move as a favourable protectionist step that could improve margins and demand for domestic producers in the short term.
How long will the 12% safeguard duty be in effect?
The 12% safeguard duty will remain in place for 200 days from its notification. This temporary measure allows the government and the Directorate General of Trade Remedies (DGTR) to monitor import trends and evaluate the need for a more permanent solution depending on its impact on the domestic industry.
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Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
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