Context:
In a significant trade policy move, India has imposed a 12% safeguard duty on select steel imports, effective April 21, 2025, for a temporary period of 200 days. The Ministry of Finance issued the notification in an effort to curb a surge in low-priced steel imports, particularly from China and South Korea.
Key Highlights:
- Duty Type: Safeguard duty under Section 8B of the Customs Tariff Act.
- Rate: 12% on specific steel categories (exact HS codes to be notified separately).
- Duration: 200 days from the date of publication (unless amended or revoked).
- Primary Target: Imports from China, India’s second-largest steel supplier in FY25.
Why This Move?
- India witnessed a nine-year high in steel imports, reaching 9.5 million metric tons in FY 2024-25.
- The country has been a net importer of finished steel for the second straight year, putting pressure on domestic producers.
- The safeguard duty is designed to protect Indian steel manufacturers from unfair pricing and market flooding by global exporters.
Potential Impacts
- Short-term rise in domestic steel prices.
- Relief for Indian steelmakers, especially integrated players like SAIL, JSW, and Tata Steel.
- Possible WTO scrutiny or bilateral concerns from impacted countries.
- May influence infrastructure costs if extended beyond 200 days.
TH
