The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, APRIL 22, 2025
“We are grateful for the government’s decisive move to impose a 12% safeguard duty on flat steel products, much needed to stop imports arriving at predatory prices. This support will help investors to focus with renewed vigour for a capacity build-up towards 300 million tons by 2030 for an Aatmanirbhar Bharat and will set the cornerstone for a Viksit Bharat,” said Naveen Jindal, President of the Indian Steel Association and Chairman of Jindal Steel and Power.
In a landmark decision aimed at reinforcing India’s domestic steel industry, the government has imposed a 12% safeguard duty on select flat steel products for 200 days, effective April 21, 2025. This bold step comes amid a surge of low-cost imports, predominantly from China, South Korea, and Japan, which collectively constituted 78% of India’s finished steel imports in FY 2024–25.
The move follows an in-depth investigation by the Directorate General of Trade Remedies (DGTR), launched in December 2024, which confirmed that the steep rise in imports of non-alloy and alloy steel flat products had inflicted considerable injury on domestic producers. With imports hitting a nine-year high of 9.5 million metric tons in FY 2024–25, India became a net importer of finished steel for the second year in a row — an alarming trend for a nation that stands as the world’s second-largest crude steel producer.
The safeguard duty is expected to bring immediate relief to domestic manufacturers, especially small and medium-sized enterprises that have struggled to compete with the deluge of underpriced foreign steel. The measure has received strong backing from leading industry players including JSW Steel, Tata Steel, the Steel Authority of India, and ArcelorMittal Nippon Steel India.
Industry experts believe that this duty will not only arrest the declining competitiveness of Indian steelmakers but also serve as a catalyst for long-term investment and capacity expansion. Under the National Steel Policy 2017, India aims to ramp up its steel production capacity to 300 million tons by 2030 — a target that demands a secure and stable environment for domestic producers.
The government’s action resonates with global trends, as countries worldwide adopt protective strategies to safeguard their industrial base. For India, this measure sends a strong signal: the era of unchecked dumping is over, and the future belongs to a resilient, self-reliant manufacturing ecosystem.
As the nation accelerates towards its vision of Aatmanirbhar Bharat, the safeguard duty marks not just a policy shift but a reaffirmation of India’s commitment to nurturing its core industries and building a robust economic future.
