Focus on strengthening domestic production, prevent dumping
The Government has taken several steps to safeguard domestic steel manufacturers and to strengthen competitiveness of India’s steel industry. These include countervailing duty for welded stainless steel pipes and tubes from China and Vietnam.
The United States of America (USA) has announced imposition of 25 per cent tariff on steel and aluminium products on most favoured nation (MFN) basis from March 12. The Government of India continues to engage with the US Government to achieve enhancement and broadening of bilateral trade ties in a mutually beneficial and fair manner.
Minister of State for Steel and Heavy Industries Bhupathiraju Srinivasa Varma informed the Lok Sabha last week that steel is a deregulated sector and the Government acts as a facilitator by creating a conducive policy environment for its development.
Directorate General of Trade Remedies (DGTR) conducts anti-dumping investigations, under the Customs Tariff Act, 1975 and the rules made thereunder, on the basis of a duly substantiated application filed by the domestic industry alleging dumping of goods into the country causing injury to the domestic industry.
To address concerns regarding increased dumping of steel from other countries in India, anti dumping duty measures pertaining to some steel products like seamless tubes, pipes and hollow profiles of iron, alloy, or non-alloy steel (other than cast iron and stainless steel) (from China PR), electro-galvanised steel (from Korea RP, Japan, Singapore), stainless-steel seamless tubes and pipes (from China PR), welded stainless steel pipes and tubes (from Vietnam and Thailand) are currently in place.
The Government has taken several steps to safeguard domestic steel manufacturers and to strengthen competitiveness of India’s steel industry. These include countervailing duty for welded stainless steel pipes and tubes from China and Vietnam.
In Union Budget 2024-25, basic customs duty was reduced from 2.5 per cent to nil for ferro-nickel and molybdenum ores and concentrates which are raw materials for steel industry in order to support domestic manufacturers and boost domestic steel manufacturing.
Customs duty exemption on ferrous scrap has been continued up to March 31 2026. The exemption on specified raw material for manufacture of cold rolled grain oriented steel has been continued up to March 31 2026.
Production Linked Incentive (PLI) Scheme has been extended for specialty steel to promote their manufacturing within the country and reduce imports by attracting capital investments. The anticipated additional investment under the PLI Scheme for Specialty Steel is Rs 27,106 crore with downstream capacity creation of around 24 million tonne (mt) for specialty steel. A Steel Quality Control Order has been issued which bans sub-standard / defective steel products in domestic market as well as imports to ensure the availability of quality steel for industry, users and public at large. As per the order, only quality steel conforming to the relevant BIS standards is to be made available to end users. As on date, 151 Indian Standards stand notified under the Quality Control Order covering carbon steel, alloy steel and stainless steel.