New Delhi: A senior Indian government official indicated that recent diplomatic engagement with China is unlikely to alter New Delhi’s plans to implement tariffs on steel imports. As per reports, this comes just a day after Prime Minister Narendra Modi and Chinese President Xi Jinping held their first formal discussions in five years during the BRICS summit in Russia.
India, the world’s second-largest producer of crude steel, has been grappling with a significant increase in cheap steel imports, particularly from China, which surged to a seven-year high between April and August. As a result, Indian steel mills have faced mounting pressure, prompting concerns over the impact of these imports on local industries.
Countries such as Turkey and Indonesia have already taken action against the influx of affordable Chinese steel, introducing anti-dumping duties to protect their domestic manufacturers. In light of these challenges, India’s steel ministry has proposed a temporary tariff, or ’safeguard duty,’ which would be a broad measure that applies even to countries with which India has free trade agreements.
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Despite the positive tone of the recent talks between Modi and Xi, the official emphasized that this diplomatic thaw would not influence the government’s stance on the tariff policy. The commitment to safeguard domestic steel producers remains strong, highlighting the balancing act India faces between maintaining economic relationships and protecting its local industries.
As countries around the globe react to the surge in Chinese steel exports, India appears set to move forward with its protective measures, reinforcing its position in the ongoing international trade dialogue.
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