India is still examining a proposal to levy a safeguard duty on steel imports, said Darpan Jain, Director General of Directorate General of Trade Remedies (DGTR) on March 17.
While, the Steel Ministry had recommended for a higher safeguard duty of about 25 percent to limit rising imports, particularly from the likes of China, Moneycontrol reported on March 12 that the government is toying with the idea of imposing a lower levy of 10-15 percent.
This is on account of smaller steelmakers advocating for no tariffs or a cap of up to 15 percent, at best. However, larger players remain firm on their proposal of a steeper 25 percent tariff.
The call for protective measures come at a time when major steel companies are scaling back on capital expenditure and revising their guidance downward, with declining prices weighing on profitability.
The Indian Steel Association (ISA), which represents leading steelmakers, such as Tata Steel and JSW Steel, has been lobbying the government for a safeguard duty on steel since December, anticipating that higher tariffs from the US could lead to a surge in imports into India. However, negotiations remain at an impasse.
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