India imposes 12% provisional safeguard duty on steel products to curb unwanted imports

In a bid to protect the domestic steel industry from a surge in low-cost imports, the Government of India has imposed a 12 percent safeguard duty on certain non-alloy and alloy steel flat products.

The move, announced by the Ministry of Steel and Heavy Industries, aims to provide immediate relief to Indian manufacturers grappling with market distortions caused by a spike in foreign steel inflows.



Union Minister H. D. Kumaraswamy welcomed the decision, describing it as “timely and necessary” to ensure fair competition and market stability.

“This move will provide critical relief to domestic producers, especially small and medium-scale enterprises, who have faced immense pressure from rising imports,” he said.

Earlier on March 20, 2025, TOI reported that the Directorate General of Trade Remedies (DGTR), the investigative arm of the Ministry of Commerce, advised the imposition of the duty for a provisional period of 200 days. According to the DGTR’s report, the measure is necessary to address "serious injury and threat" to the domestic industry arising from a sudden spike in imports.

The investigation was initiated after a petition by the Indian Steel Association (ISA), representing major domestic producers. The DGTR noted that trade diversion—caused in part by protectionist measures adopted by the United States—has led to increased inflows of steel products into India.

To prevent similar market disruptions, other nations including the European Union, South Africa, Turkey, Vietnam, Malaysia, and Tunisia had already raised import barriers in recent years.

“Any protective measure by India shall be at a level adequate to ward off trade diversion,” the DGTR noted, citing the EU’s 25% safeguard duty introduced in 2018 as a precedent.