Domestic Steel Industry Applauds Safeguard Duty Proposal

The domestic steel industry has expressed approval for the commerce ministry's recent recommendation to impose a safeguard duty on imports of specific flat steel products. The initiative is seen as a strategic move to bolster India's self-reliance within the sector.

Naveen Jindal, President of the Indian Steel Association (ISA), commended the three-year safeguard duty proposal as a favorable step. Although the proposed 12 percent duty is below the 25 percent commonly applied in global geopolitical contexts, it signals strong governmental support for initiatives like Aatmanirbhar Bharat in the steel industry.

The Directorate General of Trade Remedies (DGTR) has advocated for this duty to shield domestic manufacturers from a recent surge in imports, threatening the industry. Initial findings led to a provisional 12 percent duty in April; the DGTR now recommends a descending duty over three years: 12 percent in the first year, followed by reductions to 11.5 and 11 percent, respectively.

(With inputs from agencies.)