India Recommends 12% Duty on Certain Steel Imports: Shielding Local Producers
- ByAdmin --
- 05 Apr 2025 --
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On March 25, 2025, India’s Directorate General of Trade Remedies (DGTR) made headlines by recommending a 12% countervailing duty on certain flat-rolled steel imports. This policy move aims to curb the impact of foreign subsidies and protect Indian steelmakers from price undercutting.
What’s the Issue?
Flat-rolled steel, widely used in construction and manufacturing, is being imported at artificially low pricesdue to subsidies in exporting countries. Domestic producers argued that this was hurting Indian businesses, especially small and medium players.
What the DGTR Found
After months of investigation, the DGTR concluded that:
• Countries like China and Korea were giving indirect subsidies
• These were causing material injury to Indian producers
• A 12% duty could level the playing field
The recommendation will now go to the Finance Ministry for implementation.
Legal Framework Behind This Move
This duty is proposed under the Customs Tariff Act, 1975, which allows India to impose countervailing duties on imports that benefit from unfair subsidies in their home countries.
Who It Affects
• Indian steel companies = protected
• Importers = higher costs
• Large infrastructure projects = likely cost adjustments
Conclusion
This isn’t protectionism for the sake of it—it’s a legal safeguard. The 12% duty tells the world: if you want to trade with India, play fair.
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