India Imposes 12% Safeguard Duty to Support Domestic Steel Sector

In a significant development aimed at protecting India’s steel manufacturing industry, the central government has imposed a 12% safeguard duty on the import of specific non-alloy and alloy steel flat products. This measure is designed to curb the impact of a recent surge in steel imports that has put pressure on domestic producers, especially small and medium-sized enterprises (SMEs).

The move is intended not only to ensure fair competition but also to stabilise the market, which has seen an influx of cheaper steel products from abroad. The safeguard duty aims to provide a level playing field to Indian manufacturers and preserve the health of the sector.

Government’s Strategic Support for the Steel Sector

Welcoming the decision, Union Minister for Steel and Heavy Industries, Shri H. D. Kumaraswamy, described the move as both timely and necessary. He noted that the safeguard duty would serve as a critical support mechanism for domestic producers who have been adversely affected by the recent surge in imports.

“This move will provide critical relief to domestic producers, especially small and medium-scale enterprises, who have faced immense pressure from rising imports. The safeguard duty will help restore market stability and reinforce the confidence of the domestic industry,” he stated.

Reinforcing Atmanirbhar Bharat

Shri Kumaraswamy also extended his gratitude to the Hon’ble Prime Minister Shri Narendra Modi for his leadership and commitment to bolstering strategic industries as part of the Atmanirbhar Bharat initiative. He reaffirmed the Ministry’s pledge to work closely with all stakeholders to enhance the resilience, self-reliance, and global competitiveness of the Indian steel sector.

Read More: India Considers Waiving Import Duties on US Ethane and LPG to Bolster Trade Relations. 

Market Reaction

Following the announcement, the Nifty Metal index showed a positive response, trading 0.83% higher as of 12:24 PM. This suggests a degree of investor optimism regarding the protective measures being undertaken by the government for the steel industry.

The safeguard duty provides domestic steel mills a window to hike prices in the near term. On the stock front, players with a strong foothold in the flat steel segment such as JSW Steel, Tata Steel, and SAIL. 

Conclusion

The imposition of the 12% safeguard duty reflects a proactive policy measure by the Indian government to shield its steel sector from external pressures. While not a long-term solution, it underscores a strategic intent to provide breathing room for domestic players and preserve industrial momentum in line with broader national objectives.

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