Potential 24% Safeguard Duty on Steel: Impact on Indian Steel Manufacturing
- Fortran Steel
- 3 days ago
- 8 min read
India’s steel market is under renewed strain from a surge in steel import from overseas and other low-cost sources. In 2024–25, the country became a net importer of finished steel for the second year in a row, with imports nearing 10 million tonnes. The bulk of this supply comes from international suppliers and manufacturers, who are exporting products like bright bars, steel wires, galvanized iron sheets, and ppgi sheets & coils at prices Indian producers find difficult to match.
In April 2025, the Indian government responded by introducing a safeguard duty on steel of 12% as a provisional measure, valid for 200 days. This step helped slow the flow of cheap steel imports, but it has not been enough to fully protect domestic mills or stabilize the market.
Now, with continued pressure from inexpensive steel imports, the government is actively considering raising the safeguard duty to 24%. The move is designed to complement existing anti-dumping duty on steel and curb the disruptive impact of underpriced foreign steel on India’s industrial ecosystem.
At Fortran Steel, we view this as a critical moment. As a long-established steel manufacturing company in India, we know that fair competition, not uncontrolled dumping, is what drives innovation and strength in the sector. Protectionist tools like safeguard duty may not be permanent, but they are sometimes necessary to ensure the long-term viability of local manufacturers.
Let’s unpack what safeguard duty really means, why it’s rising now, and what it could mean for buyers, importers, and manufacturers alike.
Understanding Safeguard Duty on Steel in India
Before learning about the nitty gritty of safeguard duty and its potential impact, it's essential to understand exactly what it is.
What is Safeguard Duty?
Safeguard duty is a temporary tax imposed on certain imported goods when a sudden increase in those imports threatens to damage a country’s domestic industry. It is not about punishing unfair pricing (that is the role of anti-dumping duty); it is about controlling volume-based disruptions.
In the case of safeguard duty on steel, the goal is clear: protect India’s domestic steel manufacturers from the flood of cheaper steel entering the market, particularly from global steel import channels.
India has strong capacity in core steel segments, be it stainless steel or mild steel. But when steel imports from other countries start outpacing local production or force down prices to unsustainable levels, the viability of Indian producers is at risk.
This is where safeguard duty comes in. The government applies it as an urgent, temporary shield:
To stabilize steel prices
To prevent job losses across steel manufacturing companies in Mumbai, Odisha, Gujarat, and other hubs
To give domestic steel manufacturing companies in India time to adjust production and costs without being forced out of the market
India imposed an initial safeguard duty on steel of 12% in April 2025 for 200 days as a provisional measure. Now, seeing continued pressure from cheap steel import volumes, the government is considering raising this to 24%.
This duty sits alongside other trade tools, such as anti-dumping duty on steel, forming part of a broader national strategy to manage India's steel trade exposure. For steel buyers and traders, understanding this mechanism is critical. It affects both India import tariffs and future sourcing decisions across key product categories like steel nails, MS steel products, galvanized sheets, and more.
Safeguard Duty vs. Anti-Dumping Duty
These two are often confused, but they serve different roles:
Safeguard duty targets volume-based disruption—legally priced goods entering in overwhelming quantities.
Anti-dumping duty on steel targets pricing abuse—when foreign companies sell steel below production cost just to dominate a market.
Safeguard Duty | Anti-Dumping Duty |
Temporary measure to counter import surge | Targets products sold below fair market value |
Not based on unfair pricing | Based on proven dumping |
Aimed at stabilizing market | Aimed at correcting unfair trade |
Both can apply simultaneously. Right now, India uses both tools to manage the flow of foreign steel imports and products from international suppliers that bypass existing pricing checks.
Why is the Indian Government Planning to Increase Steel Safeguard Duty to 24%?
India’s Ministry of Commerce is weighing a decision to raise the current safeguard duty on steel from 12% to 24%. The provisional 12% duty was introduced in April 2025 for 200 days, following a surge in steel imports. But the government now believes that the measure may not be strong enough to slow down rising import volumes or shield local manufacturers.
The Surge in Foreign Steel Imports
In FY 2024–25, cheap steel imports rose sharply in India, fueled by oversupply in China and aggressive pricing from international suppliers. These imports undercut Indian prices across core categories like steel bars and steel wires, affecting even the top steel companies in India.
While an anti-dumping duty on steel is already in place for some categories, it only applies when pricing is proven to be below cost. In contrast, safeguard duty addresses the total volume impact, even when pricing is technically legal. The recent surge in steel imports from other countries triggered the need for broader, faster-acting protection.
Trade Imbalance and Global Pressure
This move comes at a time when global steel trade is becoming increasingly protectionist. The U.S. recently imposed a 50% tariff on foreign steel, and the conversation around tariffs on India and India’s export to USA is heating up. India is responding not just to trade threats, but to an evolving global policy environment that prioritizes domestic industry protection.
India’s rising trade deficit with a few countries, driven partly by steel, has added urgency to the safeguard review. Government sources have signaled that the increase to 24% is being seriously considered, pending results from ongoing investigations and industry feedback.
Impact of Higher Safeguard Duty on Indian Steel Manufacturers
If approved, a 24% safeguard duty on steel could reshape the domestic market landscape. While the impact will vary depending on company size and product mix, the overarching goal is to give Indian steel manufacturers the breathing space they need to stay viable.
Short-Term Price Stabilization
The most immediate effect would be a stabilization in steel prices. With low-cost steel imports facing higher duties, Indian producers will face less pressure to cut prices. This is particularly helpful for manufacturers of bright bars, structural steel, and stainless steel products, where margins have been tight.
Support for Domestic Production
For companies like Fortran Steel, the duty supports investment and consistency. With fairer competition, we can maintain quality, scale, and service levels without compromising to chase artificially low prices. It also gives smaller steel manufacturing companies in Mumbai and across India a better chance to compete with foreign suppliers.
Long-Term Competitiveness
Critics argue that trade protection may hurt long-term competitiveness, but for a steel manufacturing company operating in an already distorted global market, this duty is a necessary reset. The key is using this window to improve cost-efficiency, build export capacity, and invest in downstream value-added products.
How Buyers, Traders & Importers Should Respond to Higher Steel Duties
A 24% duty on steel imports changes the economics of sourcing dramatically. For buyers, traders, and importers, it’s critical to understand how the new tariff environment will affect cost structures, timelines, and sourcing reliability.
Reassess Supply Chain Dependence on Imports
Companies that depend heavily on other countries' suppliers will face increased landed costs. This is the time to evaluate local alternatives from reliable steel manufacturing companies in India. Sourcing from trusted domestic producers ensures better control over lead times, quality, and cost predictability, without the volatility of shifting India import tariffs.
Plan Ahead for Cost Impacts
Rising safeguard duty will ripple through infrastructure, construction, and engineering projects. B2B procurement teams should lock in pricing where possible, build contingency budgets, and consider forward contracts with Indian suppliers to mitigate risk.
This is especially relevant for stainless steel importers and companies sourcing bulk quantities of steel products.
Stay Updated on Trade Policy
Policies are evolving fast. From the proposed duty hike to developments in India US tariffs, even small changes can affect profitability. Traders should stay in close contact with their logistics teams and customs consultants to track new rules affecting steel imports and US tariffs on India more broadly.
Fortran Steel’s Perspective: High-Quality, Trade-Ready Steel Solutions
At Fortran Steel, we welcome any policy that helps create a fairer environment for domestic manufacturers. As a trusted steel manufacturing company in India, we believe in competing on quality, service, and innovation, not in a race to the bottom on price driven by unsustainable steel imports.
Our focus remains clear: supplying trade-ready, high-performance products to our clients across India and global markets. Our product range includes all kinds of steel bars, wires, nails, sheets, and coils, all produced with precision, consistency, and reliability.
For buyers and traders looking to diversify away from vulnerable import channels, Fortran Steel offers a strong alternative. We are a steel company in India with the scale and technical expertise to meet both volume requirements and strict quality standards. Our clients include major B2B partners, infrastructure companies, and industrial firms who value dependable delivery and product integrity.
In a volatile trade environment, where India's import tariffs and global steel import policies are shifting fast, working with a proven domestic supplier is the smart choice. Fortran Steel is ready to support that shift with products built for today’s market realities.
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Conclusion
India’s proposed move to raise safeguard duty on steel from 12% to 24% is deemed a necessary defense against the surge in cheap steel imports. It reflects broader global trends toward protecting domestic industries, especially as countries like the U.S. double down on tariffs affecting the global steel trade.
For India, the challenge lies in balancing protection with long-term trade health. Higher duties help domestic steel manufacturing companies compete, but they also risk raising costs for downstream industries and straining trade relations.
At Fortran Steel, we see this as a critical moment for our sector. We support measures that ensure a fair market and safeguard the competitiveness of Indian manufacturers. At the same time, we remain committed to serving both domestic and international clients with resilient, trade-ready solutions, no matter how the tariffs on India evolve.
For buyers, traders, and B2B partners, this is the time to align with suppliers who can deliver quality, compliance, and reliability in a changing landscape. Fortran Steel is ready to be that partner.
FAQs
What is safeguard duty on steel in India?
Safeguard duty on steel in India is a temporary import tax imposed by the government to protect domestic steel manufacturers from a sudden surge in steel import volumes. It helps stabilize the market by making low-cost foreign steel less competitive. The duty is currently set at 12% but may soon increase to 24%.
Why is the Indian government increasing safeguard duty on steel?
The Indian government is considering raising the safeguard duty on steel due to the sharp rise in foreign steel imports. Low-priced imports from international suppliers are impacting local producers. The proposed increase to 24% aims to curb damaging steel imports and support steel manufacturing companies in India by restoring a level playing field.
How do safeguard duties affect steel prices?
Higher safeguard duty on steel generally leads to more stable or slightly higher domestic steel prices. It reduces the price pressure created by cheap steel imports. For buyers of products like galvanized iron sheet, bright bars, steel wire, and PPGI sheets, this means adjusting procurement strategies as the cost of imported steel may rise.
How does the US tariff policy impact Indian steel exports?
Recent changes in US tariff on Indian goods and the US doubling tariffs on foreign steel affect steel exports from India. Higher US tariffs make Indian steel less competitive in that market. At the same time, the global shift towards protectionism encourages India to strengthen its own trade defenses, such as raising safeguard duty on steel.
What is the benefit of safeguard duty for Indian steel manufacturers?
The safeguard duty on steel offers Indian steel manufacturers crucial protection against large volumes of low-cost steel imports. It helps domestic producers maintain sustainable production levels, invest in capacity, and compete fairly in both local and global markets.
How can B2B buyers adapt to rising steel import duties?
B2B buyers should diversify sourcing and engage with trusted steel manufacturing companies in India. Partnering with reliable suppliers of steel products will help mitigate the impact of changing India import tariffs and safeguard duties. Buyers should also monitor global trade trends, including low-cost steel import activity and anti dumping duty on steel developments, to inform procurement decisions.
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