India Rolls Out 3-year Steel Duty Plan To Curb Cheap Chinese Imports

New Delhi: India on Tuesday decided to impose an 11 to 12 percent import duty on select steel products for the next three years. The government says that the cheap and ever-increasing steel consignments coming from China are hurting the domestic market. The new fee will be 12 percent in the first year, 11.5 percent in the second year, and 11 percent in the third year. This decision has been notified in the official gazette.

Which imports will be affected?

The duty will be applicable on steel coming from China, Vietnam, and Nepal. Some developing countries will get an exemption. The special thing is that special category products like stainless steel will not come under this scope. The government has clearly stated that the aim is to save domestic producers and not to completely block trade.

What triggered this decision?

India is the world's second-largest producer of crude steel, but a flood of low-priced steel coming from China over the past few months has raised concerns. Industry organizations and steel companies were continuously complaining that due to cheap consignments, their production was becoming expensive and the competition in the market had become unequal. Investigating agency DGTR said in its report that imports have increased at a “sudden and rapid pace,” posing a threat of injury to the domestic industry.

Has India tried similar measures before?

Earlier in April 2025, the government had temporarily imposed a 12 percent duty, but it ended after 200 days in November. In August 2025, the Indian Stainless Steel Development Association had filed a petition with the DGTR demanding action against cheap imports.

What is the role of the global situation?

There is tension around the world regarding China's steel exports. After former US President Donald Trump's decision to impose an import tax, China turned to other countries. Due to this, countries like South Korea and Vietnam also imposed anti-dumping duties to protect their markets. In such an environment, India's decision does not look like an isolated step but part of a global response.

How will it make an impact on the future?

The fee will gradually decrease over the next three years. The government wants the domestic industry to strengthen its position during this period. It is also clear that if imports increase again or price manipulation is observed, further changes in the rules can be made. What impact this will have on prices for steel consumers will become clear in the coming months.