Kumaraswamy Backs 12% Safeguard Duty to Protect Domestic Steel Industry
The newly announced 12% safeguard duty on steel imports is a strategic shield for Indian producers facing mounting import pressure.
Key Highlights:
In a decisive move to protect domestic manufacturers, the Central Government has imposed a 12% safeguard duty on steel imports, drawing strong support from Union Minister of Steel and Heavy Industries, HD Kumaraswamy.
According to the Ministry of Steel, this measure aims to mitigate the adverse effects of import surges and ensure a level playing field for Indian producers, particularly small and medium-scale enterprises that have been under immense pressure due to rising competition from cheaper imports.
HD Kumaraswamy Applauds the Move
Welcoming the government’s decision, HD Kumaraswamy stated:
“This move will provide critical relief to domestic producers, especially small and medium-scale enterprises, who have faced immense pressure from rising imports. The safeguard duty will help restore market stability and reinforce the confidence of the domestic industry.”
He also extended his gratitude to Prime Minister Narendra Modi, crediting the step to the vision of Atmanirbhar Bharat, and reaffirmed the Ministry’s commitment to building a resilient and globally competitive steel sector.
Why the Safeguard Duty on Steel Imports Was Necessary
Sharp Import Spike Triggers Government Action
- The Ministry of Finance cited a significant surge in steel imports as the primary reason for introducing the provisional safeguard duty.
- Imports of non-alloy and alloy steel flat products saw a steep rise in recent months, threatening to cause serious injury to domestic industries.
- This situation prompted the government to act swiftly, ensuring the Indian steel ecosystem doesn’t lose momentum amidst global price undercuts.
Steel Products Covered Under the New Safeguard Duty
Five Steel Product Categories Affected
The safeguard duty applies specifically to imports falling below set minimum price thresholds. These categories include:
- Hot rolled coils, sheets and plates
- Hot rolled plate mill plates
- Cold rolled coils and sheets
- Metallic coated steel coils and sheets
- Colour-coated coils and sheets
Minimum Import Price Range
- The government has fixed the minimum import prices from $675 per tonne to $964 per tonne.
- Any shipment arriving below these thresholds will attract the 12% safeguard duty, thereby protecting domestic pricing standards.
Potential Impact on Domestic Steel Producers
Positive Implications Across the Sector
- Small and Medium Enterprises (SMEs): Major beneficiaries, as they often struggle to compete with underpriced imports.
- Price Stabilization: The safeguard duty helps maintain a stable domestic market price.
- Production Confidence: Indian firms may see renewed investment and production confidence, especially in strategic sectors.
Encouragement for Atmanirbhar Bharat
HD Kumaraswamy emphasized how the safeguard duty aligns with the government’s broader goal of self-reliance in key industries, reinforcing India’s economic independence and manufacturing capabilities.
Industry Reactions and Expectations
Steel manufacturers and industry bodies have lauded the government’s action, noting it as a proactive and protective measure that supports both the current and future viability of India’s steel sector.
Key expectations going forward include:
- Further review of duties based on market behavior.
- Consultation with stakeholders to address product-specific nuances.
- Expansion of protection if global market disruptions persist.
What This Means for You
If you are an industrial stakeholder, SME steel producer, or even part of the supply chain, this 12% safeguard duty on steel imports brings some immediate breathing room. It signals the government’s resolve to guard Indian industries against global pricing volatility, ensuring that domestic innovation and production are not stifled by external pressures.
The step also sets a precedent for strategic market intervention, giving a clear signal that India will not hesitate to defend its core industries in the global marketplace.
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