India mulls 25% safeguard duty on steel imports

India is considering implementing a “safeguard duty” of up to 25 per cent on steel imports to address the issue of cheap imports from China, according to industry and government sources.

The proposal received widespread support at a meeting chaired by Commerce Minister Piyush Goyal. Small industries, initially opposed, were assured that they would not be affected by higher steel prices.

“It seems the safeguard duty will be imposed after an investigation, likely completed within a month,” said an industry official who attended the meeting. “To address concerns of small manufacturers, large steelmakers will supply them steel at reduced prices.”

India’s Directorate General of Trade Remedies is probing the impact of low-cost steel imports from China on domestic steel producers. A temporary tax is expected to be imposed post-investigation.

Attribution: Reuters

Subediting: M. S. Salama