Key Takeaways:

• India imposed $121.5/tonne anti-dumping duty on Vietnam’s hot-rolled steel.

• A 3-year safeguard duty on flat steel imports starts at 12% and declines annually.

• Action follows a petition by the Indian Steel Association citing an import surge.

• DGTR investigated imports from Vietnam, China, South Korea, and Japan.

• GTRI warns that the duty may raise input costs and hurt downstream industries.

• The move aligns with India’s self-reliance and domestic manufacturing goals.

India has imposed both anti-dumping duties on hot-rolled flat steel products from Vietnam and a three-year safeguard duty on a broader range of flat steel products. These decisions follow formal investigations triggered by petitions from domestic industry bodies and reflect the steps taken to protect the country’s steel sector, enabling it to become globally competitive.

Petition and Investigation Background

The action has been taken to safeguard the domestic industry after a petition filed by the Indian Steel Association, representing major domestic steel producers. The complaint alleged a significant and sudden surge in steel imports across product categories, causing injury to the local industry.

In response, the Directorate General of Trade Remedies (DGTR) initiated investigations in December 2024, covering a wide spectrum of products, including hot-rolled, cold-rolled, metallic-coated, and colour-coated flat steel. The probe focused on the period from October 2023 to September 2024, during which imports had risen sharply, particularly from Vietnam, China, South Korea, and Japan.

As part of the investigation process, DGTR registered multiple interested parties, including importers, user industries, and international stakeholders. Extensive consultations, data collection, and public hearings were conducted to assess the validity of the claims and the potential impact of trade remedies.

Trade Measures Imposed

Based on the findings by DGTR, India has implemented a fixed anti-dumping duty of $121.5 per tonne on imports of hot-rolled flat steel products from Vietnam, which will remain in force for five years. In addition to this, a three-year safeguard duty has been finalised for certain categories of flat steel imports. The structure of this duty will see rates of 12% in the first year, followed by 11.5% in the second, and 11% in the third year. These definitive measures follow the imposition of a provisional 12% safeguard duty introduced in April 2025 for 200 days. The trade remedies were recommended to address a significant pricing disparity, with landed costs of imported steel undercutting domestic prices by as much as $87 per tonne, even after duties and levies posing a serious threat to local producers.

GTRI's Opposition

GTRI has strongly criticized the safeguard duty, stating it could negatively impact India’s wider manufacturing ecosystem. GTRI argued that the move may raise input costs, restrict access to specialised steel grades not produced domestically, and harm downstream sectors such as auto, engineering, and consumer electronics.

According to GTRI, India’s steel imports were still below pre-COVID levels, and the data did not justify claims of an import surge. They have stated that domestic steel producers are reporting healthy margins and that the safeguard duty could create cartel-like conditions, especially when combined with existing quality control restrictions.

GTRI is strongly emphasizing that while the intention is to protect domestic production, the broader impact on industrial competitiveness and consumer pricing could be detrimental.

Outlook

Such trade measures reflect a wider policy trend toward protecting core manufacturing sectors and promoting domestic capacity-building under the government’s self-reliance drive. However, the decision has widened the gap between upstream producers and downstream users, who are concerned about input cost pressures, sourcing constraints, and the broader impact on industrial competitiveness.

Whether these duties stabilize the steel sector or lead to unintended supply chain consequences remains to be seen, as market participants now recalibrate sourcing strategies, pricing structures, and production plans in response to the new trade landscape.