Steel ministry suggests 25% safeguard duty on steel imports

Taking up the concerns of domestic steel industry, the steel ministry on Monday proposed for a 25% safeguard duty on import of certain steel items into the country.

The proposal came at a meeting between Union Minister of Steel H. D. Kumaraswamy and Commerce and Industry Minister Piyush Goyal in the national capital, sources said.

Senior officials from both the ministries and executives of top steel making companies like SAIL, Tata Steel, JSW Steel and AMNS India also attended the meeting, they said.

"Held a meeting with stakeholders from the steel and metallurgical coke industries along with my colleague & Minister of Heavy Industries and Steel @HD_Kumaraswamy ji," Goyal said in a post on X.

"With both industries playing a vital role in India's development journey, discussed ways to boost production, enhance quality, and further strengthen global competitiveness," the minister said.

According to Kumaraswamy, the two ministries discussed ways to collaborate and ensure ease of doing business for domestic players.

"We discussed ways for our ministries to collaborate and ensure ease of business for the steel and heavy industries, key sectors driving India's growth," Kumaraswamy wrote on X.

"Strengthening the steel and heavy industries sector is critical for building a self-reliant India, and we will work tirelessly to create an enabling environment for its growth and global competitiveness," he said, adding, "Together, we aim to foster innovation, boost domestic production, and enhance India's position as a global manufacturing hub."

During the meeting, the steel ministry proposed for a 25% safeguard duty on steel imports to address the issues being faced by the domestic industry, the sources said.

Domestic steel players have been consistently raising their concerns over rising cheap steel imports from select nations, affecting their competitiveness.

Speaking to PTI recently, Steel Minister Kumaraswamy said that the industry has apprised the ministry about their challenges and the government is working to address the issues related to steel imports.

Steel Secretary Sandeep Poundrik last month said around 62 per cent of steel imports are landing from FTA (free trade agreement) countries at nil duty and any duty hike will not have any impact on these shipments.

There is a genuine problem and the ministry is aware of that, Poundrik said.

India's steel imports were at 5.51 million tonnes (MnT) in April-September 2024-25, higher from 3.66 MnT in the year-ago period, as per research firm BigMint.

Imports from China have surged to 1.85 MnT during that period from 1.02 MnT in April-September period of financial year 2023-24, it said.

Think tank GTRI has said that the FTAs need careful scrutiny as some FTAs allow Indian firms to partner with foreign producers and re-import steel at concessional rates, raising concerns about competition.

"Port delays and red tape are choking India's steel user industries. Over 10,000 steel user units face financial strain due to delays at ports and unclear regulatory requirements. Essential imports for manufacturing industries face excessive scrutiny," GTRI Founder Ajay Srivastava has said.

India has free trade agreements with countries like Japan, South Korea, Mauritius and the ASEAN bloc.