Just 200 days. India is preparing to shake the major countries of the world. The eyes of the whole world are fixed on the tariff war between the countries of America, China, Canada, Mexico, and Europe. On the other hand, India is also going to surprise everyone by jumping into this war. India will not only trouble many countries of the world with a single attack but will also surprise them. Actually, India is considering increasing the tariff on steel products. This increase will be temporary. The government is considering imposing this tariff for 200 days. This decision can be a big blow to China, South Korea and Japan. India is importing more than 70 percent of steel from these countries. Now the biggest question is why and how much is India increasing the import duty? Let’s try to understand this whole matter.
Why do you have to make a decision
The Directorate General of Trade Remedies (DGTR), the investigation arm of the Commerce Ministry, has recommended imposing a temporary safety charge of 12 per cent for 200 days on certain steel products with the aim of protecting domestic steel from a surge in imports. DGTR had initiated an investigation in December last year into the sudden increase in imports of non-alloy and alloy steel flat products used in various industries including fabrication, pipe manufacturing, manufacturing, capital goods, auto, tractor, bicycle and electrical panels.
demand for investigation
The investigation was conducted following a complaint by the Indian Steel Association on behalf of its members. ArcelorMittal Nippon Steel India, AMNS Khopoli, JSW Steel, JSW Steel Coated Products, Bhushan Power & Steel, Jindal Steel & Power and Steel Authority of India Limited are the members of the association. The Directorate General in its investigation preliminarily found that there has been a sudden, rapid and significant increase in the import of these products into India in the recent past, which is likely to cause serious injury to the domestic industry/producers.
12% tariff recommended
In its notification dated March 18, DGTR said that such serious circumstances exist where any delay in the application of temporary safeguard measures will cause such damage that it will be difficult to compensate. There is an urgent need to implement temporary safeguard measures. According to the notification, the authority has recommended imposing temporary safeguard duty at the rate of 12 percent ad valorem for 200 days till a final decision is taken on the import of the product under consideration. The Finance Ministry will take the final decision on imposing this duty.
Korea, China and Japan will be affected
According to the industry, this situation has arisen due to the reduction in demand in China, Japan and South Korea. The import of these products increased from 22.93 lakh tonnes during 2021-22 to 66.12 lakh tonnes during the investigation period (October 2023 to September 2024 and the three preceding financial years 2021-24). Imports have increased from countries including China, Japan, Korea and Vietnam. The notification said that the purpose of this duty is to protect the Indian domestic industry against the increase in imports.
