India may impose more taxes on steel import to help domestic industry

India may be preparing to impose another round of curbs on steel imports by introducing a safeguard duty.

Rising imports from countries such as China, Indonesia, Japan, Russia and South Korea have been hitting the domestic industry hard despite a 20 percent import tax on steel.

The Directorate General of Safeguards, a division of the finance ministry, said in a statement on its website that it had found evidence that increasing imports had “caused or threatening to cause serious injury to the domestic producers.”

“The domestic industry has requested for immediate imposition of safeguard measures for a period of four years in their application. The domestic industry has also requested for imposition of provisional safeguard duty in view of steep deterioration in performance of the domestic industry as a result of increased imports of product…,” the statement said.

It said capacity utilisation of domestic industry had dropped to 37 percent this year from 45 percent in 2012-13 and market share had dropped too.

Steel Authority of India, Essar Steel, JSW Steel and Jindal Steel had asked the directorate to look into the matter in October.

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