Safeguard import duties on steel could cripple auto, engineering, and construction sectors: GTRI

Three years of security duty on steel imports by the Directorate General of Trade Remedies (DGTR) can tell in a report of the Global Trade Research Initiative (GTRI) by carrying forward input costs to auto, engineering and construction sectors and squeezing downstream users. The security duty confirmed on 16 August will start from 12 percent in the first year, followed by 11.5 percent in the second year and 11 percent in the third year.
The DGTR stated that the decision is taken due to a sharp increase in steel imports, especially from China, and a steep decline in domestic industry profits.
However, GTRI stated that “duties will cripping auto, engineering and construction areas”.

The DGTR began an investigation in December 2024 following complaints from prominent producers such as AMN, JSW Steel, Jindal Steel and Power, and Pal, including a number of products including hot-rald and cold-rald steel, metallic-koted and colored steel.


On April 21, 2025, an provisional 12 percent of the already was charged. In its final order, DGTR stated that the import “recently, sudden, rapid and significantly” from October 2023 to September 2024. In 2024, Chinese exports alone reached 110.7 million meters, jumping from 2023 to 25 percent, which with more supply to India -with more supply. Imported Hot-Rold Coil landed at USD 450 per MT in May 2025, which was about 87 USD 87 USD compared to Indian costs even after duties. Domestic gains fell by 76 percent before tax, which DGTR stated that local producers had “serious injuries”.

However, GTRI said that more than 250 stakeholders, including major vehicle manufacturers, electronics firms and industry bodies, opposed the duty. Tata Motors, Maruti Suzuki, Hyundai, Toyota Kirloskar, LG, Samsung, Whirlpool, ABB, Siemens, Crumpton Greaves, Havells, and L&T were among those that take on the move that the step will increase the input costs, harm the export competition, and make the customer-specific grades difficult.

ACMA, EEPC, and Iema echoed similar concerns, stating that many grades of steel are not produced locally and imports are necessary. He argued that the import volumes were returning to east-coved levels, not increasing, and criticized the Aadhaar year’s DGTR’s choice.

GTRI also fought the DGTR findings, given that India remains a pure steel importer with demand in an estimated FY2024-25 of 137.82 MT against Mount’s domestic production.

It stated that the steelmakers still enjoyed strong profitability, Tata Steel recorded 21 percent Ebitda margin in India and left for 11.6 percent.

According to GTRI, away from being subjected to crisis, Indian steel producers were rich, and were securing duty risks that manufacture conditions such as cartel when combined with quality control orders.

GTRI also noted that security duty would protect some large producers at the cost of India’s comprehensive manufacturing ecosystem.