DGTR proposed to introduce a 12 percent protective duty in the first year, 11.5 percent in the second year and 11 percent in the third year, which was transferred to the Revenue Department under the Ministry of Finance for official notification and enforcement of the fee.
In April 2025, the Indian government imposed a temporary 12 percent protective duty on steel imports for 200 days.
GTRI indicated that leading automakers such as Tata Motors Limited, Maruti Suzuki India Limited (MSIL), Hyundai Motors India Limited (HMIL), Toyota Kirloskar India Limited (TKIL) and others have submitted objections to the tax on imports, arguing that this would inflate production costs, reduce export competitiveness, and make it more difficult for customers to find specific steel grades.
The Automotive Component Manufacturers Association (ACMA) also raised objections to the protective duty.
Imports of hot-rolled coils in May 2025 amounted to $450/ton, which is almost $87/ton cheaper than domestic supplies, even after paying duties. The protective duty will force automakers to cover the higher cost of boarding or