A section of Micro, Small, and Medium Enterprises (MSMEs) in the steel sector is preparing to urge the central government to reconsider the proposed 12% provisional safeguard duty on certain steel products, fearing a sharp rise in domestic prices.<\/p>\n
Industry insiders believe that if implemented, the safeguard duty could lead to an 8-10% increase in domestic steel prices, significantly affecting MSME exporters who rely heavily on steel as their primary raw material. With steel accounting for nearly 60% of MSME production costs, any price surge could erode their competitiveness in both domestic and international markets.<\/p>\n
On March 19, 2024, the Directorate General of Trade Remedies (DGTR)\u2014the Commerce Ministry\u2019s investigative arm\u2014recommended imposing a 12% provisional safeguard duty on certain imported steel products for 200 days.<\/p>\n
The proposal aims to protect domestic steel producers from a potential surge in low-cost imports.<\/p>\n<\/li>\n
However, the final decision rests with the Finance Ministry, which must approve the levy before implementation.<\/p>\n<\/li>\n
If imposed, the safeguard duty would immediately raise the cost of steel for industries dependent on imports, including MSMEs.<\/p>\n<\/li>\n<\/ul>\n
Industry representatives warn that the safeguard duty could cripple MSME exporters, many of whom are already struggling with tariff barriers in key international markets.<\/p>\n
Domestic steel prices are already high due to ongoing global trade tensions and rising raw material costs.<\/p>\n<\/li>\n
The additional 12% safeguard duty could make Indian steel-based products more expensive, reducing their competitiveness in global markets.<\/p>\n<\/li>\n
The United States recently imposed higher tariffs on steel and aluminum, further straining Indian MSME exporters.<\/p>\n<\/li>\n<\/ul>\n
According to Pankaj Chadha, Chairman of EEPC India, MSME exporters are deeply concerned about the 25% tariffs imposed by the U.S. on steel and aluminum products.<\/p>\n
India\u2019s total steel and iron exports to the U.S. amount to $3 billion, out of a total $5 billion in metal exports.<\/p>\n<\/li>\n
With the U.S. imposing higher duties, many Indian MSMEs are already facing reduced demand and lower profit margins.<\/p>\n<\/li>\n
Nearly $1 billion worth of steel-based exports currently in transit to the U.S. may be impacted by the new American tariffs.<\/p>\n<\/li>\n<\/ul>\n
While large Indian steel manufacturers have long advocated for a safeguard duty on imported steel, MSMEs fear the move will backfire by raising their raw material costs.<\/p>\n
Major steel producers, represented by the Indian Steel Association (ISA), have been lobbying for a 25% safeguard duty since December 2023.<\/p>\n<\/li>\n
Their argument is that countries like China could increase steel dumping in India, especially after the U.S. raised tariffs on Chinese steel imports.<\/p>\n<\/li>\n
However, MSME steel manufacturers argue that the current 12% safeguard duty is still too high, despite being lower than the initial 25% proposal.<\/p>\n<\/li>\n<\/ul>\n
An industry representative, speaking on condition of anonymity, stated:<\/p>\n
\n\u201cA 12% duty is better than 25%, but for MSMEs, even a small increase in steel prices can have severe consequences. The interests of big steel players have been considered, but MSMEs are being overlooked.\u201d<\/p>\n<\/blockquote>\n
MSMEs to Approach the Government Again<\/h2>\n
MSME industry bodies plan to submit a formal representation to the government, urging them to reconsider the safeguard duty.<\/p>\n
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This is not the first time MSMEs have raised concerns.<\/p>\n<\/li>\n
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Industry players had previously written to the government regarding steel price hikes, and they plan to do so again in light of the latest developments.<\/p>\n<\/li>\n
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The Finance Ministry will have to weigh the interests of both large steel manufacturers and small-scale producers before making a final decision.<\/p>\n<\/li>\n<\/ul>\n
With global trade conditions becoming increasingly volatile, and India aiming to strengthen its domestic manufacturing sector, the government\u2019s decision on the 12% safeguard duty will be closely watched by steel producers, exporters, and industry analysts.<\/p>\n","protected":false},"excerpt":{"rendered":"
Small-Scale Steel Exporters to Seek Government Relief A section of Micro, Small, and Medium Enterprises (MSMEs) in the steel sector is preparing to urge the central government to reconsider the proposed 12% provisional safeguard duty on certain steel products, fearing a sharp rise in domestic prices. Industry insiders believe that if implemented, the safeguard duty […]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1365],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-5696","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=5696"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5696\/revisions"}],"predecessor-version":[{"id":5698,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5696\/revisions\/5698"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/5697"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=5696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=5696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=5696"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=5696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}