India has imposed a safeguard duty on certain steel imports for a period of three years, a move aimed at protecting domestic manufacturers from a surge in low-priced foreign steel, particularly from China. The decision was notified through an order issued by the finance ministry and published in the official government gazette on December 31.
Under the new measure, an import duty of 12 per cent will be levied in the first year, starting April 21, 2025, and ending April 20, 2026. The duty will gradually taper to 11.5 per cent in the second year and further to 11 per cent in the third year, remaining in force until April 20, 2028. The tariff applies to selected steel products and is intended as a safeguard duty under trade remedy provisions.
The government said the step was necessary in view of a “recent, sudden, sharp, and significant increase” in steel imports, which it believes has caused or threatens to cause serious injury to the domestic steel industry. Officials have long flagged concerns over dumping practices, especially cheap steel shipments from China, which have put pressure on Indian steelmakers’ prices and margins.
While the duty will affect imports from countries such as China, Vietnam and Nepal, the order exempts certain developing nations. Specialised steel products, including stainless steel, have also been kept outside the ambit of the safeguard duty, offering relief to sectors that rely on niche or high-grade imports.
The latest decision follows an interim safeguard duty of 12 per cent imposed earlier in April 2025 for a period of 200 days. That temporary measure was introduced after investigations by the Directorate General of Trade Remedies pointed to rising imports hurting local producers.
Industry observers see the move as part of India’s broader effort to ensure fair competition, stabilise domestic steel prices, and support local manufacturing, while still balancing trade commitments and supply needs.
