The Indian government has imposed a phased three-year safeguard duties on steel imports from China, Vietnam and Nepal to protect domestic industry, according to a government notification issued on Wednesday, December 31.
The levy was based on recommendations of Directorate General of Trade Remedies which had established that imports of alloy and non-alloy steel products have risen sharply hurting domestic steel mills.
The safeguard duty will be phased as:
- 12 percent from April 2025 to April 2026
- 11.5 percent from April 2026 to April 2027
- 11 percent from April 2027 to April 2028
The government had earlier imposed a flat rate of 12 percent safeguard duty in April 2025, effective for 200 days which expired in November 2025.
According to the DGTR investigations concluded earlier, the surge in imports created a serious injury and threat to domestic steel producers. Cheaper foreign steel led to loss of market share for Indian manufacturers, pressured prices, and weakened capacity utilization and profitability.
The investigation concluded that the injury was material and ongoing, with domestic producers unable to compete against underpriced imports.
The government notification said that the safeguard duty was necessary to stabilize the domestic steel industry and prevent further financial damage.