Govt may hike steel safeguard duty to 24% to counter Chinese imports: Report

India remained a net importer of finished steel for the second straight year in FY25, with imports estimated to have approached the 10-million-tonne mark

The Centre is considering doubling the safeguard duty on steel imports to as high as 24 percent, up from the current 12 percent, amid rising concerns over potential dumping of Chinese steel in the Indian market, The Times of India reported, citing senior government officials.

The move comes in response to complaints that Chinese companies are attempting to bypass existing trade protection measures. “We have received complaints of Chinese players trying to blunt the impact of the safeguard action by circumventing it. We are mulling over various options,” a senior official told TOI.

In late April, the government imposed a provisional 12 percent safeguard duty for 200 days to shield domestic producers from a potential import surge. According to TOI, any upward revision in the duty would require a detailed investigation by the Directorate General of Trade Remedies (DGTR).

With the United States and several other countries ramping up levies and trade actions against Chinese steel, there are growing fears that India, the world’s second-largest crude steel producer, could become a key destination for diverted Chinese steel exports, often priced below market rates.

India remained a net importer of finished steel for the second straight year in FY25, with imports estimated to have approached the 10-million-tonne mark, the report said.

However, smaller domestic players have flagged concerns over the safeguard duty’s unintended impact. Many say the move has led to a spike in prices by large domestic manufacturers, pushing up input costs for smaller firms. The government is expected to weigh both sides before deciding on the next course of action, TOI reported.