India Moves to Protect Steel Industry from Cheap Imports
The Indian government is actively considering the imposition of import tariffs on specific steel products as a defensive measure against the growing threat of cheaper imports, particularly from China, flooding the domestic market. This development was reported by Reuters on Tuesday, November 25, 2025, citing sources familiar with the matter.
A government official confirmed that "it (tariff) is under consideration," indicating serious deliberations are underway to address what domestic producers describe as unfair trade practices harming local manufacturing.
Three-Year Tariff Plan Recommended
In a significant move earlier this year, India, which holds the position of the world's second-largest crude steel producer, has formally recommended implementing import tariffs ranging between 11% to 12% on certain steel products. This recommendation came following comprehensive investigations by the Directorate General of Trade Remedies (DGTR).
The proposed tariff structure is designed to provide three years of protection for domestic steel manufacturers, giving them breathing space to compete against artificially low-priced imports that threaten market stability and production capacity.
Growing Anti-Dumping Concerns
The primary driver behind this potential policy shift is the increasing concern about anti-dumping practices, where foreign producers, mainly Chinese steel mills, export steel to India at prices significantly below their domestic market rates or production costs. This practice makes it difficult for Indian manufacturers to compete on price, potentially leading to reduced market share and financial strain.
The Indian steel industry has been vocal about the challenges posed by these cheap imports, arguing that they distort market dynamics and threaten the health of a sector that plays a crucial role in the country's infrastructure development and economic growth.
This remains a developing story, and further updates are expected as the government finalizes its decision on the proposed import tariffs.
