The Government of India has imposed safeguard measures of import duty on a limited range of steel products for a period of three years in an effort to respond to the significant increase in low-cost steel imported into the country, which has had a detrimental effect on the country’s steel producers.
The safeguard duty is to be imposed at a rate of 12 percent for one year, which would gradually decrease to 11.5 percent for the second year, and ultimately to 11 percent for the third year. It is a structured form of tariffs which would help steel manufacturers obtain immediate relief while gradually adjusting to market conditions.
This step comes after some assessments carried out by trade authorities indicated an increase in steel imports. The steel imports have been from countries such as China and are linked with dumping and have further impacted steel industry’s profitability capabilities.
As the second-largest producer of crude steel, India has been confronted with rising challenges posed by cheaper imported shipments, thereby making the domestic steel sector even more competitive. The imposed safeguard duty will help stabilize the domestic steel industry.
Industry participants are also expecting this new policy to boost local manufacturing as it addresses the issue of price realization and shields local manufacturers against harm resulting from any shock increase in imports. However, the gradual reduction in the duty is also calculated to provide time to adapt to this change.
This step reflects how the government is committed to creating a balanced trading environment while also securing critical sectors of industry that are indispensable to India’s infrastructure development.
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BASUNDE, Rohini（Global PR & Reporter ）
Based in India, Rohini works as a Reporter and Global PR professional,
leveraging her strong background in culture, society, and media studies.
Her work primarily involves article writing and managing global public relations campaigns.
Her core areas of interest are multiculturalism, intercultural understanding, and cross-cultural communication,
through which she disseminates information from a truly international perspective.
Hobbies: Drawing, photography, editing, traveling, and cooking.
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