India’s Directorate General of Trade Remedies (DGTR) has proposed imposing a staggered safeguard duty over three years on imports of hot-rolled flat products made from non-alloy and other alloy steel. The decision comes after the agency determined that a sharp increase in such imports has severely harmed the domestic industry and poses a serious risk to its long-term stability.
In its final report, the DGTR noted “a recent sudden, sharp, and substantial rise in imports of the product in question” and recommended a phased safeguard duty—12% in the first year, followed by 11.5% in the second, and 11% in the third. The proposal follows a provisional 12% duty introduced in April for a duration of 200 days.
The recommendation was prompted by a complaint from the Indian Steel Association, whose members include ArcelorMittal Nippon Steel India, JSW Steel, Jindal Steel and Power, and Steel Authority of India.
Data shows that Chinese steel exports surged to 110.7 million metric tons in 2024, a 25% increase over the previous year, with a significant portion of the surplus being diverted to India. In May 2025, imported hot-rolled coils were priced at $450 per metric ton, roughly $87 lower than domestic rates, even after accounting for duties. As a result, Indian manufacturers saw the profit before tax plummet by 76%, which the DGTR classified as ‘serious injury’ to the local industry.
However, trade policy think tank GTRI criticized the decision, pointing out that DGTR had dismissed objections from over 250 stakeholders, including leading automakers and electronics companies.
Depending on the type of steel product, imports from China, Vietnam, and Nepal may be affected by the proposed measures. Hot-rolled coils, sheets, and plates originating from developing countries, excluding China and Vietnam, may qualify for exemption. In contrast, cold-rolled coils, sheets, and color-coated sheets from developing nations, other than China and Nepal, could also be exempt from the duty.
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