← External Forces: Trade, Geopolitics & Market Access (all topics)
Safeguard duty on flat steel imports
What it is
A trade remedy against a surge in imports, distinct from anti-dumping in that it does not require proof of unfair pricing - only injury from increased volume. India imposed a provisional 12% duty on select flat steel from 21 Apr 2025
It was converted into a three-year levy from Jan 2026, tapering 12% in year one, 11.5% in year two and 11% in year three
Impact on industries
- Restored pricing discipline by raising landed import costs, reviving deferred capital raising - steel-linked IPO plans of ~Rs 4,000 cr followed
- The three-year taper gives the certainty a two-hundred-day provisional measure could not, which matters for capacity decisions with decade-long paybacks
- Protection raises input costs for every downstream user - engineering, auto components, capital goods and construction all buy protected steel
- It treats the symptom not the cause - global overcapacity persists, and coverage of select flat products lets imports reroute to uncovered categories