Steel Safeguard Duty: A Three-Year Proposal

The Directorate General of Trade Remedies (DGTR), under the commerce ministry, has proposed a three-year safeguard duty on imports of certain flat steel products. This recommendation comes in response to a sudden surge in shipments, which poses a threat to domestic producers.

Industry Reactions and Implications

The Indian Steel Association, representing major players like ArcelorMittal Nippon Steel India and JSW Steel, has welcomed the move, citing serious injury to domestic manufacturers. However, the proposal has faced criticism from trade policy think tank GTRI, which warns of increased input costs and reduced export competitiveness for downstream industries.

The Global Context

With Chinese exports of these steel products increasing by 25% in 2024, India has become a significant market for redirected shipments. The DGTR's investigation, covering various types of steel, highlights the challenges faced by the domestic industry amidst global trade dynamics.