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News Topical, Digital Desk : The Directorate General of Trade Remedies (DGTR), the investigation arm of the commerce ministry, has recommended imposing a three-year steel safeguard duty on imports of certain flat steel products. The DGTR said there has been a sudden and sharp growth in imports of these products, which is likely to cause serious injury to Indian manufacturers.

In its final report, DGTR suggested that the duty should be imposed at 12% in the first year, 11.5% in the second year and 11% in the third year. Earlier, a temporary duty of 12% was imposed for 200 days in April.

What is the industry's complaint? This recommendation came after a complaint by the Indian Steel Association, which includes major manufacturers such as ArcelorMittal Nippon Steel India, JSW Steel, Jindal Steel and Power and Steel Authority of India. The association said that the growth in imports of non-alloy and alloy flat steel is causing serious damage to Indian manufacturers and the threat remains in the future as well. DGTR said that it has made this recommendation keeping in mind the damage being caused to Indian manufacturers and the threat posed by imports. 

What is the concern? Trade policy think tank GTRI has criticized this move. A media report quoted GTRI founder Ajay Srivastava as saying that DGTR rejected the opposition of more than 250 stakeholders, such as automobile and electronics companies. They warned that the duty would raise the cost of raw materials, hurt competitiveness in exports and put pressure on industries such as auto, engineering and construction. The DGTR investigation, which began in December 2024, covered hot-rolled, cold-rolled, metallic and colour-coated steel. According to GTRI, exports of these products from China rose 25% to 110.7 million tonnes in 2024, most of which were shipped to India. GTRI says this growth in imports was not sudden, but predictable, and the duty could cause more damage to Indian industries.
 


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