Steel Industry Applauds Commerce Ministry's Recommendation for Safeguard Duty on Flat Steel Imports

The Indian steel industry has expressed approval of the commerce ministry's suggestion to impose a safeguard duty on certain flat steel imports. This move is seen as a step towards making India more self-reliant in steel production. Naveen Jindal, President of the Indian Steel Association (ISA), stated that the recommendation for a three-year safeguard duty on flat steel imports is a positive development.

The Directorate General of Trade Remedies (DGTR), part of the Ministry of Commerce, has proposed a safeguard duty on specific flat steel imports for three years. This aims to shield domestic producers from a sudden surge in imports. The DGTR is responsible for overseeing trade remedial measures like anti-dumping and countervailing duties.

Safeguard Duty Proposal

In its final findings, the DGTR noted a recent and significant rise in imports of the product under consideration. This increase, attributed to unforeseen developments, poses a threat to the domestic industry. Consequently, the DGTR recommended a 12% duty in the first year, decreasing to 11.5% in the second year and 11% in the third year.

Jindal, who also chairs Jindal Steel, highlighted that setting minimum import prices as a safety net is beneficial. This measure would trigger the recommended duty if prices fall below a certain level, thus supporting downstream industries.

Industry Response and Government Support

The ISA, representing members like ArcelorMittal Nippon Steel India and JSW Steel, filed an application for this safeguard duty on non-alloy and alloy steel flat products. The association believes that while the proposed 12% duty might not fully align with global norms of 25%, it shows government backing for initiatives like Aatmanirbhar Bharat in steel.

Earlier this year, based on preliminary findings, the government had already imposed a provisional 12% safeguard duty for 200 days. The DGTR's final findings support this decision by highlighting the risks posed by increased imports to local producers.

The DGTR's notification emphasized that these import increases could cause serious harm to domestic manufacturers. By recommending staggered duties over three years, it aims to provide gradual relief and protection to the local industry.

This initiative underscores India's commitment to bolstering its domestic steel sector against external pressures. The phased approach to imposing duties reflects a balanced strategy to support local producers while considering international trade dynamics.

With inputs from PTI