The collection was based on recommendations from the Directorate General for Trade Protection Products, which found that imports of alloy and non-alloy steel products had increased dramatically, causing damage to domestic steel mills.
The protective duty will be phased in:
- 12 percent from April 2025 to April 2026
- 11.5 percent from April 2026 to April 2027
- 11 percent from April 2027 to April 2028
The government previously introduced a fixed protective duty rate of 12 percent in April 2025, effective for 200 days, which expired in November 2025.
According to DGTR investigations conducted earlier, the surge in imports has caused serious damage and posed a threat to domestic steel producers. Cheaper foreign steel has led to a loss of market share for Indian producers, pressure on prices, and weakened capacity utilization and profitability.
The investigation concluded that the damage was substantial and ongoing, as domestic producers could not compete with imports at low prices.
The government notification stated that the protective duty was necessary to stabilize the domestic steel industry and prevent further financial damage.
