Steel Ministry Seeks 15% Customs Duty on Finished Steel Imports to Protect Domestic Industry
The Ministry of Steel has formally requested the Ministry of Finance to increase the basic customs duty on imported finished steel products from 7.5 percent to 15 percent in the upcoming Union Budget for 2025–26. This move aims to curb the adverse effects of growing steel imports, particularly from China, which has seen a notable rise in the current financial year.
Official data reveals that imports from China now account for 32 percent of the total steel imports in India, putting significant pressure on domestic steel producers. The Steel Ministry believes that raising the import duty will help protect the Indian steel industry from unfair competition, particularly from cheaper Chinese steel products that have flooded the market. The proposed increase in customs duty would act as a safeguard for local manufacturers and allow them to remain competitive in the face of rising imports. It is expected to bolster India’s domestic steel industry, encourage local production, and safeguard jobs in the sector.
The Ministry’s proposal comes as part of a broader strategy to reduce dependency on steel imports and strengthen India’s industrial capabilities. With the domestic steel sector struggling against cheaper imports, particularly from China, the Steel Ministry’s push for a higher customs duty is seen as a critical measure to ensure the industry’s long-term sustainability.
