Naveen Jindal Praises 12% Safeguard Duty on Steel Imports
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Synopsis
Naveen Jindal, President of the Indian Steel Association, has welcomed the government's decision to impose a 12% safeguard duty on certain flat steel products for 200 days, effective April 21. This move aims to protect the domestic steel industry from low-priced imports and support India's goal of achieving a production capacity of 300 million tonnes by 2030.
Key Takeaways
- Naveen Jindal supports 12% safeguard duty on steel.
- Duty effective for 200 days starting April 21.
- Targets imports from China, South Korea, Japan.
- Aims for 300 million tonnes steel capacity by 2030.
- Endorsed by major industry players.
New Delhi, April 22 (NationPress) Naveen Jindal, President of the Indian Steel Association and Chairman of Jindal Steel and Power, expressed his approval of the 12 percent safeguard duty on specific flat steel products for 200 days, effective from April 21.
Jindal, who played a crucial role in advocating for this duty, remarked, "We appreciate the government’s decisive action to implement a 12 percent safeguard duty on flat steel products, which is essential to halt imports arriving at predatory prices.”
“This assistance will enable investors to concentrate with renewed enthusiasm on building capacity towards 300 million tonnes by 2030 for an Aatmanirbhar Bharat and will lay the foundation for a Viksit Bharat," he added in a statement.
In a strategic initiative to protect its domestic steel sector from an influx of low-cost imports, the Indian government has enacted a 12 percent safeguard duty on certain flat steel products for a period of 200 days.
This provisional measure aims to reduce the flow of affordable steel imports, primarily from China, South Korea, and Japan, which comprised 78 percent of India's finished steel imports during the fiscal year 2024-25.
The Directorate General of Trade Remedies (DGTR) advocated for this duty following an investigation initiated in December 2024. The inquiry unveiled that the significant rise in imports of non-alloy and alloy steel flat products was inflicting substantial harm on domestic manufacturers.
As the world's second-largest crude steel producer, India has become a net importer of finished steel for the second consecutive year, with imports hitting a nine-year peak of 9.5 million metric tonnes in 2024-25.
The safeguard duty is anticipated to deliver vital relief to domestic steel producers, especially small and medium-sized enterprises, who have been under severe pressure from escalating imports.
Industry figures, including JSW Steel, Tata Steel, the Steel Authority of India, and ArcelorMittal Nippon Steel India, have endorsed the introduction of import restrictions.
India's National Steel Policy 2017 outlines an ambitious objective to elevate the nation’s steel production capacity to 300 million tonnes by 2030.
Realizing this ambition necessitates significant investments and confidence in the domestic market, both of which are reinforced by protective measures like the newly instituted safeguard duty.
