Archive · 6 Jan 2026
Steel Companies Gain from New Import Duty
The Indian government has decided to impose a duty on imported flat steel products for three years.
The duty will be 12% in the first year, 11.5% in the second year, and 11% in the third year.
This decision comes after an earlier temporary duty lapsed in November.
The government is trying to help domestic steel companies, but this might make steel more expensive for other industries, especially small and medium-sized businesses that are already struggling.
The delay in announcing the new duty suggests that the government was worried about the impact on these industries.
Import duty imposed on flat steel products for three years at varying rates.
Duty rates: 12% (first year), 11.5% (second year), 11% (third year).
Previous interim duty lapsed on 7 November, indicating government reluctance due to potential adverse effects.
Consuming industries, particularly SMEs, may face higher steel prices and additional challenges.
Government aims to support domestic steel companies while balancing the impact on other industries.
- Who
- Steel companies and consuming industries, particularly SMEs
- What
- Imposition of import duty on flat steel products
- When
- Duty to be levied for three years, starting from the date of notification
- Where
- India
- Why
- To curb the surge in imports and support domestic steel companies, despite potential adverse effects on consuming industries
- Duty Rate
- 12% (first year), 11.5% (second year), 11% (third year)
- Duration
- 3 years
- Affected Products
- Most grades of flat steel products
- Previous Duty
- Interim duty imposed in April, lapsed on 7 November
- Impacted Industries
- Small and medium-sized enterprises (SMEs)
