India has recently imposed import tariffs for a three-year period on select steel products, targeting a sharp rise in low-priced shipments from China that regulators say are hurting domestic producers.
The tariff has been set at 12 per cent in the first year, easing to 11.5 per cent in the second year and further tapering to 11 per cent in the third year. The measure follows concerns flagged by trade authorities over increasing imports at prices below prevailing domestic levels.
As the world’s second-largest crude steel producer, India has been grappling with sustained inflows of cheaper steel, particularly from China, raising anti-dumping concerns and putting pressure on local steelmakers’ margins and capacity utilisation.
The move is expected to provide near-term relief to domestic producers while allowing a gradual adjustment as duties are phased down over the three-year period.