India Launches Safeguard Probe into Steel Imports to Protect Domestic Industry
India has initiated a safeguard probe into the growing imports of Non-Alloy and Alloy Steel Flat Products, following concerns raised by the Indian Steel Association (ISA). The Directorate General of Trade Remedies (DGTR) officially launched the investigation after the ISA, representing major steel companies like ArcelorMittal Nippon Steel India, JSW Steel, and Steel Authority of India, filed an application requesting the imposition of a safeguard duty on these imports.
The products under scrutiny include hot-rolled coils, sheets, plates, cold-rolled coils, sheets, metallic-coated steel, and color-coated steel sheets. These steel products are widely used in industries such as fabrication, construction, pipe-making, automobiles, bicycles, and electrical panels. The ISA claims that a significant rise in steel imports, particularly from countries with excess production capacities, has caused considerable harm to domestic producers. The probe comes at a time when India’s steel imports have surged dramatically, more than doubling to $18.6 billion in the fiscal year 2024. This surge is largely driven by the demand for steel products not widely produced within India, such as flat-rolled and specialty steels, which are critical for advanced sectors like defense, aerospace, and heavy machinery. The increasing influx of cheaper steel imports has raised alarms over the survival of India’s steel manufacturers.
The investigation will focus on import data from October 2023 to September 2024, while also reviewing trends from 2021 to 2024. The government is concerned about the impact of overcapacity in China, cheap imports, and potential tariffs from the US on steel products. Earlier discussions have suggested imposing a 20% safeguard duty to protect the domestic industry from these challenges. However, certain steel products like cold-rolled grain-oriented electrical steel, stainless steel, and tinplate have been excluded from the investigation. The final outcome of the probe could lead to protective tariffs on steel imports, helping to safeguard India’s steel industry and maintain fair competition for domestic producers. This move highlights India’s growing efforts to shield its industries from unfair trade practices while ensuring sustainable growth in the steel sector. As the probe continues, the government’s response will play a crucial role in balancing trade relationships and protecting local manufacturing.
