The Indian Steel Ministry has proposed imposing a 25% safeguard duty on certain steel products to ease the difficulties faced by domestic steel manufacturers due to rising imports. The proposal was brought up at a meeting attended by senior officials of the steel and commerce ministries and representatives of leading steel manufacturers in the country.
The meeting discussed strategies to increase production, improve quality, and enhance global competitiveness in the steel and heavy industry sector. The officials stressed that strengthening the domestic steel industry is critical for India to achieve self-sufficiency and consolidate its position as a global manufacturing hub.
The proposed duty aims to ease the competitive pressure created by affordable steel imports. In the first half of the fiscal year 2024-25 (April-September), steel imports increased by 41% compared to the previous year to 5.7 million tons, the highest level in the last seven years. China continues to be India’s largest supplier of steel, with 62% of imports coming from countries with which it has Free Trade Agreements. Officials said the proposed taxes would not have any impact on duty-free imports under Free Trade Agreements. It was also reported that FTAs would be subject to detailed scrutiny to prevent unfair competition in the sector.
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