In the challenging environment of China’s steel dumping and global tariff war, the Government of India has given great relief to the domestic steel industry. The government has decided to impose 11–12% safeguard duty on the import of selected steel products.

This duty will be applicable phase-wise—12% in the first year, 11.5% in the second year and 11% in the third year. The immediate impact of this announcement was visible in the stock market, where a strong rally was seen in major steel stocks like Tata Steel, JSW Steel, Jindal Steel and Jindal Stainless. This step will provide protection to Indian manufacturers from cheap Chinese steel.

Also, the pricing power of domestic players will increase, margins will strengthen and long-term profitability is expected to improve.