Safeguard duty on flat steel imports to boost domestic industry: ISA

metro india news  I hyderabad

The Indian steel industry has welcomed the government’s decision to impose a safeguard duty on the import of flat steel products, saying the move will help protect domestic manufacturers and strengthen the entire steel value chain.

Naveen Jindal, President of the Indian Steel Association (ISA), said the 12 per cent safeguard duty is a balanced and calibrated policy step aimed at maintaining stability in the domestic steel market while ensuring uninterrupted supply for consumers and key infrastructure projects. He noted that the measure would help domestic producers operate on a level playing field amid challenging global market conditions.

The government has imposed a final safeguard duty of 12 per cent on flat steel products for a period of three years. As per a notification issued by the finance ministry, the duty will remain at 12 per cent in the first year from April 21, 2025, to April 20, 2026. It will be marginally reduced to 11.5 per cent in the second year and further brought down to 11 per cent in the third year, ending on April 20, 2028.

Jindal, who is also Chairman of Jindal Steel, pointed out that surplus steel capacity from countries such as China, Japan, South Korea and Vietnam has increasingly been diverted into the Indian market. This influx, he said, has adversely impacted domestic capacity utilisation, long-term investment planning and employment generation in the sector.

He added that the safeguard duty would help counter these pressures by restoring competitive balance and providing support to domestic steelmakers. Given persistent global supply imbalances, Jindal said additional trade remedial measures could be considered as part of a broader policy framework to ensure sustainable and inclusive growth of India’s steel industry.