The Indian government's Directorate General of Trade Remedies (DGTR) has finalized a three-year safeguard duty on imports of certain flat steel products. This measure, which follows a preliminary duty imposed in April, is in response to a significant and sudden surge in steel imports, particularly from China, which the DGTR deemed a threat of "serious injury" to domestic producers. The duty will be phased in over three years, starting at 12% in the first year, then decreasing to 11.5% in the second year, and 11% in the third.

The recommendation came after a complaint from the Indian Steel Association, whose members include major domestic producers like JSW Steel and Tata Steel. The association argued that the influx of non-alloy and alloy flat steel was harming the local industry. However, the decision has been met with opposition from over 250 stakeholders, including major automakers and electronics companies. Critics, such as the trade policy think tank GTRI, argue that the duty will increase input costs, reduce the availability of critical steel grades, and ultimately harm the export competitiveness of downstream industries that rely on steel. The DGTR's final findings acknowledged the recent increase in Chinese steel exports, which have been redirected to India, but the think tank contends that the import surge was predictable, not sudden.