India Contemplates Up to 25% Tax on Steel Imports from China

Investing.com -- India plans to impose a temporary tax of up to 25% on steel imports, also known as a "protective tax." According to industry and government sources, this move aims to curb cheap imports from China, the world's largest steel producer.

The tax proposal saw broad support during a meeting on Tuesday led by Trade Minister Piyush Goyal. Small-scale industries initially opposed the plan, but after receiving assurances that they would not be affected by potential increases in steel prices, they dropped their resistance.

A sector official present at the meeting indicated that the protective tax would likely be implemented following an investigation, which is expected to be completed within a month. The official added, "To address the concerns of small producers, major steel manufacturers will supply them with steel at discounted prices."

The Directorate General of Trade Remedies is currently investigating whether cheap imports from China are adversely affecting domestic steel producers. The government is expected to implement the temporary tax after the investigation is concluded.