ICRA Limited reported that India’s steel imports may drop by 50% in FY 2025-26 if the government approves a proposed 12% safeguard duty on alloy and non-alloy steel plate imports for 200 days. 

This recommendation, made by the Directorate General of Trade Remedies (DGTR), aims to curb imports and improve domestic steelmakers' profitability. The final decision lies with the Ministry of Finance.

Girish Kadam, ICRA’s Senior VP and Group Head of Corporate Sector Ratings at ICRA, predicts that reduced imports, combined with an expected 7-8% growth in domestic steel demand, will raise capacity utilization from 78% in FY 2024-25 to 83% in FY 2025-26. 

Sehul Bhatt, Research Director at Crisil Intelligence, noted that the temporary duty would provide price stability for local producers, particularly in the first half of the fiscal year.