The directorate general of trade remedies (DGTR) under the Union ministry of commerce, has recommended a three-year safeguard duty on imports of certain non-alloy and alloy flat steel products, after concluding that a 'recent, sudden, sharp and significant' rise in shipments has caused serious injury to domestic producers.
The investigation was initiated following a complaint by the Indian Steel Association (ISA) whose members include ArcelorMittal Nippon Steel India, JSW Steel, Jindal Steel & Power and State-owned Steel Authority of India (SAIL).
According to the DGTR’s final findings published on 16 August 2025, the surge in low-priced imports from multiple countries, particularly China, Japan and South Korea, was driven by global excess capacity, trade diversion from other markets and a sharp fall in export prices. The agency noted that these imports had undercut domestic prices, weakened profitability and posed a threat of further injury to the Indian steel industry.
"It is further necessary to consider that US has already imposed 50% duties on steel products and several other countries have followed suit, as a result of which huge surplus capacities are lying with several manufacturers in all the major steel manufacturing countries. Therefore, the safeguard duty must address, not only the serious injury suffered by the domestic industry during the period of investigation (POI), but also the threat of serious injury that is likely to arise in the future," it added.
DGTR has recommended a safeguard duty starting at 12% in the first year, reducing to 11.5% in the second year and 11% in the third. A provisional safeguard duty of 12% had already been imposed for 200 days in April, which remains effective until 7 November 2025. A final notification from the Union ministry of finance (MoF) will decide the date of implementation, DGTR says.
“The measure is necessary to provide breathing space for Indian steelmakers to adjust to the unforeseen surge in imports and stabilise operations,” the report stated.
However, the recommendation has sharply divided stakeholders. Over 250 companies and trade bodies—including automakers, electronics manufacturers, and engineering firms—opposed the move, arguing it would raise costs for downstream industries.
In their submissions, leading manufacturers such as Tata Motors Ltd, Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Toyota Kirloskar Ltd, LG, Samsung, Whirlpool, ABB, Siemens, Crompton Greaves, Havells and Larsen & Toubro (L&T) warned that safeguard duties would increase input costs, limit access to specialised steel grades, and weaken India’s export competitiveness.
The Global Trade Research Initiative (GTRI), which represented several user industries, says, “DGTR’s decision ignores concerns over supply, pricing, and competition and may serve to protect a few large producers at the expense of India’s wider manufacturing ecosystem.”
Several foreign governments and companies also reportedly contested the move.
Japan argued that most of its exports cater to specific high-grade requirements not met by Indian producers and should therefore be excluded. Indonesia sought an exemption under WTO rules for developing countries, citing negligible exports.
Russia and the European Union (EU) questioned whether the import surge was truly 'sudden and unforeseen', with Brussels suggesting a tariff-rate quota (TRQ) system instead of a flat duty.
Korean steelmakers, led by POSCO and Hyundai Steel, also sought exclusions for over 100 grades, arguing that these were critical inputs not manufactured domestically.
In contrast, the ISA maintained that the surge in imports had been unprecedented and harmful. It pointed to global steel overcapacity, dumping at below cost, and diversion of exports following higher tariffs in the US and EU as key drivers.
The association argued that safeguard measures were consistent with India’s National Steel Policy 2017, which aims to boost capacity to 300 million tonnes by 2030, and are critical for both industrial self-sufficiency and national security.
The final decision rests with the Union ministries of commerce and finance, which will issue a formal notification on the safeguard duty. While steelmakers welcomed the recommendation as a lifeline, downstream industries warned of ripple effects across automobiles, appliances, construction and engineering sectors.
Trade experts suggest that the government will have to carefully balance industrial competitiveness, trade obligations, and national economic priorities while finalising the measure.
