India’s Ministry of Steel has proposed increasing basic customs duty on finished steel to 15 percent from 7.5 percent currently, the Union Budget to be place before Parliament in February 2025, government sources said on Friday, December 27.
The Ministry of Finance is currently reviewing the proposal for incorporation in the national budget for 2025-26, the sources said.
At the same time, the Directorate General of Foreign Trade (DGFT) is presently conducting investigations into imports of finished steel from China as a precursor for possible levy of a 25 percent safeguard duty for specific limited period of time to check imports.
According to the sources, a higher rate of basic customs duty coupled with the safeguard duty, if recommended by DGFT, would check inflow of imported steel and ensure a level playing field with domestic steel mills.
Indian finished steel imports touched an 8-year high of 6.5 million mt during eight months (April-November) of current fiscal 2024-25, after recording a rise of 26.6 percent over corresponding period of previous fiscal.
Steel imports from China during April-November of 2024-25 touched an all-time high at 1.96 million, after rising 22.8 percent over corresponding period of previous fiscal.