The steel ministry has proposed a 25 percent safeguard duty on the import of some steel products into India to address the grievances of the country's domestic steel industry. This proposal was under discussion when Union Minister of Steel H D Kumaraswamy met Commerce and Industry Minister Piyush Goyal in the national capital. The meeting was attended by senior officials from both ministries and executives from major steel companies such as SAIL, Tata Steel, JSW Steel, and AMNS India.
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Addressing Steel Import Challenges
The Commerce and Industry Minister Piyush Goyal announced the meeting on social media platform X. He said that the discussion focused on boosting production, enhancing quality, and strengthening global competitiveness in the steel sector. Goyal said business operations for domestic players should be eased through collaboration between both ministries and that the steel, as well as heavy industries, constitute the driving force of India's progress. Minister Kumaraswamy echoed this point. He said that strengthening steel is the key to building a self-reliant India.
Free Trade Agreements and Their Impact on Steel Importation
Steel Secretary Sandeep Poundrik said nearly 62% of India's steel imports come from Free Trade Agreement (FTA) countries at zero duty, meaning a duty hike might not affect these shipments. According to market research firm BigMint, steel imports into India reached 5.51 million tonnes (MnT) in April-September 2024-25, up from 3.66 MnT in the same period the previous year. Imports from China saw steep increases.
FTAs and Regulatory Headaches
Think tank GTRI has sought a review of FTAs, saying some agreements permit Indian firms to team up with foreign producers and re-import steel at concessional rates, raising competition concerns. GTRI Founder Ajay Srivastava pointed out the issues of port delays and red tape that strain India's steel user industries. More than 10,000 steel user units face financial strain due to regulatory challenges. The proposed safeguard duty is meant to prevent the adverse effects of rising imports, especially from FTA countries, on the domestic steel industry.
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