The government of India is mulling over the proposal to impose a countervailing duty on steel imports from China. This recommendation has come from the Directorate General of Trade Remedies and still being assessed by the finance ministry. The Chairman of the Board of Indirect Taxes and Customs, Vivek Johri, confirmed the matter to reporters during an event on Friday.
India has been continuously examining and taking various measures against the rising influx of low-priced steel imports from China, which has resulted in significant losses to domestic manufacturers. This countervailing duty aims to counter the subsidies offered by China on its steel exports, which enables them to sell steel at lower prices compared to Indian manufacturers.
Although it is still under examination, if implemented, this move will benefit Indian steel producers, who are currently struggling to compete with cheaper Chinese steel, which dominates the market. Additionally, it will assist in protecting the interests of the domestic steel industry, which has been facing several challenges, including low demand, high input costs, and the ongoing pandemic crisis.
India has already implemented several measures, including anti-dumping and safeguard duties, to prevent cheap Chinese imports and protect domestic industries’ interests. With the implementation of this countervailing duty recommended by the Directorate General of Trade Remedies, the government aims to further protect the domestic steel industry by imposing a countervailing duty on Chinese steel imports.
The government is yet to take a final decision on this matter, but it is believed that this move, if implemented, will have a positive impact on the Indian steel industry’s growth prospects. It will ensure a level playing field for domestic manufacturers, allowing them to compete with their Chinese counterparts without facing undue competition from cheap imports.
In conclusion, the proposed countervailing duty on Chinese steel imports is a significant development, and India’s steel industry is eagerly anticipating the government’s decision. If implemented, it will undoubtedly prove to be a major boost for the struggling domestic steel industry, which has been battling stiff competition from Chinese imports.
