India urges Japanese steelmakers to source locally, defends safeguard duty

Minister Goyal made the appeal during a roundtable meeting with Japanese business representatives, emphasizing that Indian steel producers manufacture high-quality products suitable for international markets. He questioned the rationale for importing steel from Japan when comparable domestic alternatives are available, underscoring the competitive advantages of sourcing from India.

India's approach to steel tariffs is more measured than that of major trading partners, Goyal noted. The country has imposed a 12 per cent safeguard duty exclusively on lower-grade steel, while permitting duty-free imports of higher-grade variants. This contrasts sharply with protectionist measures adopted elsewhere, including the United States' 50 per cent tariff and restrictions by the United Kingdom and European Union.

The safeguard duty reflects India's effort to shield domestic steelmakers from the impact of excess global capacity, particularly stemming from Chinese producers. Steelmakers across the world face surplus production capacity, prompting countries to adopt protective measures. India's calibrated approach aims to balance industry protection with market access, allowing premium-grade imports while nurturing domestic capacity in lower-grade segments.