Government mulls doubling safeguard duty on steel from 12% to 24%

NEW DELHI: The government is evaluating the possibility of increasing the safeguard duty on steel to as much as 24%, from the current 12%, amid concerns that Chinese goods may enter the market and hurt Indian steelmakers.

"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 government official told TOI.

In late April, the government had notified a provisional safeguard duty of 12% for 200 days, and a detailed investigation will be required before a higher duty is imposed.

With Chinese goods facing levies and other actions in several markets, especially the US, there are widespread fears of trade diversion with India seen as one of the markets where these goods could be dumped or sold at subsidised prices.

India, the world's second-largest crude steel producer, was also a net importer of finished steel for the second consecutive year in 2024-25. Imports are estimated to have neared the 10 million tonne mark.

Small players have, however, been complaining about the adverse impact of the safeguard action as they have to deal with higher cost due to a price hike by domestic manufacturers after the safeguard action. The government will seek to strike a balance between the two sides, sources said.