An increase in the cheap Chinese steel forces in India to consider the import tax by 12 %: Report

India is preparing for a 12 % temporary tariff on selected steel imports in an attempt to protect its local industry from a flood of cheap charges, especially from China. This step, which is expected to be presented in an unlimited manner, comes amid a sharp rise in the steel sizes that left the local producers scrambling. The government is looking to behave quickly, after recommendations from the Directorate of General Administration for Commercial Treatments (DGTR).

The Minister of Federation for Steel and Heavy Industries, HD Kumaraswamy, welcomed the decision to impose a 12 percent protection duty to import some non -stel -non -steel flat products. This procedure is a timely and necessary step to protect the local steel manufacturers from the negative impact of the high import and ensure fair competition in the market.

“This step will provide a decisive relief for local producers, especially small and medium -sized companies, who have faced tremendous pressure from high imports. The duty to protect will help restore market stability and enhance local industry confidence.”

Kumarasuami expressed his gratitude to the esteemed Prime Minister Narendra Modi for his leadership and continuous support in strengthening the strategic sectors under the vision of Atmanirbhar Bharat. He reiterated that the ministry is still committed to working with all stakeholders to ensure that the Indian steel sector remains flexible, depends on the self and competitively globally.

India, the second largest product of raw steel in the world, turned on the net of the final steel for the second year in a row in the 2014/25 fiscal year, as the shipments received for a period of nine years amounted to 9.5 million metric tons,

DGTR recommended, according to the Federal Ministry of Commerce, last month of a 12 % tariff for 200 days selected steel products. Follow this proposal probe that started in December 2023 to assess whether the increasing imports harm the local industry.

Official figures confirm the trend: steel imports jumped more than 20 % to 8.29 million tons in April to January this fiscal year, compared to 6.89 million tons in the same period from 2023-24.

The data indicated that “India was a net importer for the final steel. The import of the final steel was at 8.292 million tons, with an annual growth of 20.3 percent.”

Meanwhile, exports fell dramatically by 28.9 % to 3.994 million tons from 5.619 million tons in the corresponding period in the previous year.

Local players sparked a warning about the boom, especially from countries like China. They argue that the flow undermines their competitiveness and pushes the industry to the edge.

China, the world’s highest source, has recently escalated charges to 110.72 million tons in 2024. The highest increase in nine years is driven at low prices aimed at compensating for light global demand, which led to uncomfortable international producers who are struggling with the fragility of the judiciary.