India’s Steel Ministry is considering imposing a temporary safeguard duty to protect domestic steelmakers affected by the rise in cheap Chinese steel imports. The measure will reportedly help curb Chinese imports.
A senior official said that India has become a net importer of steel as of fiscal 2023-24 and this trend is continuing. In the April-August period, India's finished steel imports from China reached the highest level in seven years.
India had previously resisted calls to restrict imports from China to meet strong domestic demand. However, it is believed that measures should be taken to prevent the collapse of domestic steel prices. JSW Steel, Tata Steel, and ArcelorMittal Nippon Steel India, among India's largest steelmakers, have expressed concern over cheap imports from China.
The official rejected the idea of raising basic imports or tariffs, saying the move would not cover about two-thirds of India's steel imports from Japan and South Korea due to existing free trade agreements. He also said anti-dumping investigations against China would take one to two years to complete. Instead, he emphasized that the most effective solution would be to impose a safeguard duty, a temporary tax to protect local industries from cheaper imports.
It was reported that the commerce ministry would be contacted for safeguard measures and that these measures could take effect in four to six months. India will also review its quality standards in a bid to limit steel imports from China.
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