In an interview with CNBC-TV18, Poundrik revealed that the Directorate General of Trade Remedies (DGTR) is set to deliver its recommendation on the matter by January 22. Once the DGTR has made its evaluation, the Ministry of Commerce, in conjunction with the Ministry of Finance, will take the final decision on the proposed safeguard duty.
The domestic steel industry has been facing growing concerns over the influx of low-cost steel imports, particularly from China. In response, Indian steel producers have been advocating for the implementation of a safeguard duty of up to 25%. This move is seen as a critical step to protect local manufacturers from the unfair competition posed by cheap foreign steel, which has been flooding the market at prices below the cost of production.
While the steel industry has made its case for the safeguard duty, it is important to note that there has been no call for anti-dumping duties or countervailing duties, which are typically employed to combat unfair trade practices like subsidies or dumping. Instead, the request focuses solely on a safeguard duty, which would apply to imports from all countries, ensuring that Indian producers are shielded from price undercutting from foreign markets.
Industry leaders have earlier voiced their concerns over what they describe as unfair competition caused by subsidised steel exports from countries like China, Japan, Korea, and Vietnam.
Sajjan Jindal, Chairman & Managing Director of JSW Group, said in a conversation with CNBC-TV18, “If you open up the records and see China in 1990, what kind of protections they had… Today, Chinese steel, which is nearly 60% surplus capacity, comes via Japan, Korea, Vietnam, Malaysia to India at 0% duty.”
Naveen Jindal, CMD of JSPL, also said back in September, “USA and Canada have imposed suo moto 25% duty. Similarly, Japan is now asking for protection for its steel industry. We are only against the unhealthy competition that we are facing from some of these countries.”
(Edited by : Ajay Vaishnav)
