DGTR proposes 12% Safeguard Duty to Protect Domestic Steel Industry
The Directorate General of Trade Remedies (DGTR) has recommended the imposition of a 12% safeguard duty on certain steel imports for a 200-day period . This provisional measure aims to address the surge in flat product imports, which has been attributed to unforeseen global developments, and to ensure price stability in the domestic market.
The government has emphasized that the unexpected rise in imports has negatively impacted the domestic steel industry, creating an urgent need for intervention. The safeguard duty has been recommended across a range of flat steel products, preventing further disruptions in the market.
Experts suggest that domestic steel producers undergoing capacity expansions are likely to gain the most from this policy, as it will reduce import competition and enable local players to strengthen their market presence. The new duty structure is expected to result in a substantial improvement in industry-wide earnings over the next few quarters.
The move is seen as more than just a price support measure, as it aims to mitigate long-term damage to the domestic industry, ensuring that steel manufacturers can operate in a stable economic environment. The decision aligns with the government’s broader strategy to support indigenous manufacturing and curb excessive dependence on imports.