Govt extends safeguard duties on imports of steel products for 3 yrs to curb dumping

New Delhi: The government has extended safeguard duties on imports of certain steel products for three years, aiming to curb dumping from countries like China and protect domestic manufacturers from a supply glut.

The duties, first imposed as a temporary 12 per cent levy for 200 days in April, will now remain in force until April 2028, according to an official notification.

The safeguard duty will be levied at 12 per cent in the first year (April 21, 2025 to April 20, 2026), reduced to 11.5 per cent in the second year (April 21, 2026 to April 20, 2027), and further lowered to 11 per cent in the third year (April 21, 2027 to April 20, 2028).

Analysts said the shorter duration had created uncertainty among investors, and the new three-year window offers longer-term protection for domestic players.

Reacting to the development, Naveen Jindal, President of the Indian Steel Association (ISA), said the safeguard duty is a calibrated policy measure aimed at maintaining stability in the domestic steel market while ensuring continuity of supply for consumers and infrastructure projects. Jindal, who is also the Chairman of Jindal Steel, said the diversion of surplus steel capacity into India by China, Japan, Korea and Vietnam has implications for domestic capacity utilisation, investment planning, and employment.