India considers increasing protective duty on steel imports to 24%

The Indian government is assessing the possibility of raising the safeguard duty on steel to 24% from the current 12% amid concerns about Chinese producers circumventing it, The Times of India reports.

A government official told the newspaper that complaints have been received about Chinese players trying to mitigate the impact of safeguard measures by circumventing them. Therefore, the authorities are considering various options.

As Chinese goods face safeguards in other markets, especially in the US, there are widespread concerns about trade diversion. India is seen as one of the markets where steel products can be sold at dumped or subsidized prices. At the same time, small Indian players complain about the negative impact of safeguard measures, as they have to deal with higher costs due to price increases by domestic producers. The government will seek to find a balance between these two issues, the sources said.

As a reminder, India has imposed a temporary safeguard duty of 12% on certain steel imports. It will be in effect for 200 days (from April 21, 2025), unless it is canceled, replaced or amended earlier. These measures are aimed at protecting the country’s steelmakers.

As GMK Center reported earlier, India has prioritized local steel for government projects. The revised rule stipulates that all government-funded projects must use Indian-made steel products that meet the “smelted and cast” requirements, which ensures that steel is produced from basic raw materials in the country.