A Huge Step to Converse India Imposes 12% Safeguard Duty on Steel Imports: A Strategic and Futuristic Step to Protect Domestic Industry

On April 21,2025, the Indian government introduced a 12% provisional safeguard duty on flat steel imports for 200 days. This is a response to the recent large-scale low-price steel imports into the country, mainly from China, South Korea, and Japan, which disrupt the domestic steel market. The safeguard duty includes a range of alloy and nonalloy flat steel products, which also include hot rolled coils, sheets, plates, cold rolled coils, metallic coated, and color coated steel. Also, the government has put in place exemption thresholds for high-priced imports, which see cut-off prices between $675- $964 per metric ton, which vary by product type.

India reports in FY 2024- 25 to have reached a 9.5 million metric ton mark, which is a nine-year high for steel imports, which in turn has made us a net importer for the second year in a row. This has seen an increase in cheap imports, which in turn has put pressure on domestic producers’ price,s which in turn has made it hard for many of the Small and Medium Scale Enterprises (SMEs) to continue full scale operations which in some cases has led to job cuts and very tight profit margins. In December 2024, the DGTR, which is the trade investigations body, initiated an inquiry that reported back that the large-scale import growth does indeed pose a serious threat to the Indian domestic steel industry. The safeguard duty is a measure put in place to even out the field and to promote fair play for Indian manufacturers.

Leading Indian steel players such as JSW Steel, Tata Steel, and ArcelorMittal Nippon Steel India are behind this move, which they see as a step that must be taken to redress the balance of trade in favor of poorly priced imports. Union Steel Minister H. D. Kumaraswamy stressed that the decision will benefit the SME sector and give them the stability they require. From a policy point of view, this action is a play by India to strengthen its industrial base and promote self-reliance, in which it has invested via the “Atmanirbhar Bharat” initiative.

Economists and experts predict that the safeguard duty will reduce the large scale of cheap imports, allowing domestic producers to gain back market share and stabilize prices. If it works out as planned, India may revert to a net export status of steel by 2025. Also, in the end, the safeguard duty is not just a protective measure but a strategic step put in place to improve the long-term competitiveness and sustainability within India’s steel sector.

Note: This article is for informational purposes only and reflects developments as of April 22, 2025.

India Imposes 12% Safeguard Duty on Steel Imports: Implications, Opportunities & Strategic Outlook for Domestic Players

In a big blow to foreign steel players, the Government of India has introduced a 12% provisional safeguard duty, which comes into play from April 21, 2025, and is valid for 200 days. This time around, the focus is on flat steel products, which include hot rolled coils, cold rolled sheets, coated and color coated steel products, which are very much at the base of our manufacturing and infrastructure segments. Also, this is a reaction to the large-scale entry of steel from countries like China, Japan, and South Korea, which has seen domestic prices fall and our home-grown steel producers struggle to compete.

At V Metal Solutions Inc., we are at the forefront of what we see as key industry trends, which impact the steel supply chain and our very valuable customers in diverse sectors. As a company that lives by the values of Excellence, Integrity, Customer Commitment, Quality, and Sustainability, this recent change is a big step in India’s trade policy and also plays into our ongoing goal to bring to market superior grade steel products that are consistent and competitive.

The Rationale Behind the Safeguard Duty

According to a report from the Ministry of Commerce, India imported 9.5 million metric tons of steel in FY 2024-2,5, which was the highest in almost a decade, which in turn made India a net importer for the second consecutive year. Also, a large part of this import was at prices below what is sustainable for production, which in turn created distortions in the home market. The DGTR in its study, which it conducted in December 2024, reported that these imports did cause “severe injury” to local manufacturers, which mainly were the small and medium-scale players. That report led to the introduction of the safeguard duty, which we see as a measure to level the playing field and bring back price parity.

This duty does not apply to imports which cross certain value thresholds (which range from $675 to $964 per metric ton according to the product); thus, we are to target only those that are greatly outcompeting in the market. It is a precise tool that is put in place not to break trade but to right a wrong that is affecting the health of India's manufacturing base.

Impact for Domestic Manufacturers and Steel Traders.

For domestic steel players, which include V Metal Solutions Inc., we see the safeguard duty as a turning point. For a while now price price-sensitive importers have been a great challenge to Indian suppliers, which in turn has caused low margins and issues in supply chain planning. With the new safeguard duty in place, we expect to see a growth in the use of local steel, which in turn plays into our goal of becoming a global name in the steel supply space and, at the same time, supports India’s industrial growth. As a leading supplier of mild steel products, including HR, CR, HRPO, GP, GI, PPGI, PMP Plates, and structural sections, V Metal Solutions Inc. stands ready to support OEMs, fabricators, infrastructure developers, and export-oriented units with reliable, high-quality material. We are especially committed to serving clients in sectors like truck body manufacturing, textile machinery, HVAC, electrical panels, and PEB structures—industries that heavily rely on precision-grade steel for performance and durability.

Strengthening Self-Reliance: A Step Forward for “Atmanirbhar Bharat.

The imposition of safeguard duty also fits in the larger goal of Atmanirbhar Bharat (Self-Reliant India). Also, the Indian government has been putting forth the case for weaning off foreign raw materials and building up home-based industries. By promoting local purchase and manufacture, the safeguard duty not only supports present business players but also brings in future investments into the metal sector.

At V Metal Solutions Inc., we see this policy shift as a reflection of our core value in sustainability, which we are putting into practice through our investment in supply chain agility, warehouse infrastructure, and customer-focused service. We think of building a robust domestic network not as a business play but as our responsibility in India’s growth story.

Implications for OEMs and Steel Consumers

From OEMs and other steel-intensive industries’ point of view duty at first puts pressure on input costs. But in the long run, the benefits do not have an equal trade-off. Indian steel suppliers, through stabilization of domestic prices and implementation of uniform quality standards, can provide better predictability in lead time, service levels, and compliance.

V Metal Solutions Inc. is dedicated to our clients’ success through this transition. We supply a large choice of cut-to-length sheets, slitted coils, corrugated and profiled products, and custom structural materials, which we back with flexible delivery solutions and transparent pricing. We have a client-first approach, which supports every client from the MSMEs to the large export players- providing technical support, material optimization advice, and logistics coordination, which we tailor even in times of market fluctuation.

A Strategic Window for Indian Exporters

While the main aim of the duty is to reduce foreign competition, we overlook that it creates a platform for Indian exporters to grow into global markets. With import competition down and prices more stable, Indian steel companies put in greater production and target overseas markets, which they distinguish with quality and compliance.

As part of our Vision 2026, we have adopted a plan to look at exporting to Southeast Asia, the Middle East, and Africa. We are dedicated to Quality and Excellence, which we hope to use as a platform to put India on the global map with our value-added steel products, which we also aim to bring up to international standards.

Reinforcing MSME Resilience and Employment

The government’s decision on safeguard duty is very welcome for MSMEs in the steel sector, which have been reducing the scale of operations what to unviable prices. Policy has brought back competitiveness, which in turn allows for job retention, improved cash flow, and reinvestment in capacity building. Also, this has a positive effect along the entire value chain from raw material suppliers to end product manufacturers.

As an MSME, we at V Metal Solutions Inc. see the issues that small-scale companies have in the global supply chain. Since 2020, we have grown from a startup to a 7,000+ metric tonne player in four Indian states, which is a testament to the power of integrity, resilience, and community-based growth. This policy shift gives us and our peer companies the room to grow again.

Looking Ahead: A fair, competitive market.

The 12% safeguard duty is a part of a larger set of trade barriers, It is a targeted measure put in place to restore balance, fairness, and sustainability in the steel sector. As India puts in investment in infrastructure, green energy, defense, and digital manufacturing, a stable and competitive domestic steel market has become a base requirement.

We, at V Metal Solutions Inc, are excited and ready for this growth. We at V Metal Solutions are dedicated to our mission, which is to bring to our customers world-class steel solutions with integrity and innovation, and we are also committed to playing our part in India’s industrial growth as we make sure that we meet our clients’ changing requirements.

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