India has implemented a five-year anti-dumping duty on certain electrical steel imports from China, effective December 19, 2025, to protect its domestic steel industry and Indian manufacturers. This measure targets cold-rolled non-oriented electrical steel (CRNO) products, following an investigation by the Directorate General of Trade Remedies (DGTR) that found Chinese imports were being exported at “dumped” prices, causing “material injury” to India’s steel sector. The duty ranges from $223.8 to $414.9 per tonne.
The investigation period for dumping spanned April 2023 to March 2024, with the injury assessment covering April 2020 to March 2024. The DGTR’s findings revealed a staggering more than tenfold increase in CRNO imports from China since 2020-2021, with landed prices consistently undercutting the selling prices and cost of sales of Indian producers. This clear evidence of injury prompted the recommendation for immediate corrective action.
The Global Context: China’s Steel Oversupply and its Impact
This anti-dumping duty is a response to China’s massive steel oversupply, exacerbated by a slowdown in its domestic real estate sector. China, the world’s largest steel producer, accounts for over 50% of global production.
Global steel overcapacity reached 551 million metric tons (MMT) in 2023 and is projected to increase further. This surplus significantly depresses global steel prices, making it exceedingly difficult for other countries’ steel industries to compete and remain profitable. The influx of inexpensive Chinese steel destabilizes markets, leading to economic disruptions and job losses in steel-producing nations worldwide. Countries from the US to Europe have been grappling with this issue, leading to increased trade tensions and protectionism globally, with many nations imposing tariffs and anti-dumping measures.
Challenges and Resilience: India’s Steel Industry Landscape
India’s steel sector faces challenges including Raw Material Volatility (reliance on imported coking coal), High Production Costs (financing, logistics, taxes), Technological Gaps (outdated machinery), and Intense Global Competition.
In response to these challenges and to fortify the domestic industry, the Indian government has actively pursued various initiatives. Policies like the National Steel Policy (NSP) 2017, the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy, and the Production Linked Incentive (PLI) Scheme for Specialty Steel aim to boost domestic manufacturing, attract investment, and enhance competitiveness. Adjustments in customs duties, the Steel Scrap Recycling Policy, and robust Quality Control Orders (QCO) further support the sector. The renewed Steel Import Monitoring System (SIMS) 2.0 provides enhanced data for effective trade protection measures, enabling timely responses like the current anti-dumping duty. The “Make in India” initiative and significant infrastructure spending under the PM Gati-shakti National Master Plan are also designed to increase steel usage and demand domestically.
A History of Protecting Domestic Interests
India has a history of implementing anti-dumping duties on various steel products from China. Previous measures include duties on steel wheels (2013), hot-rolled and cold-rolled stainless steel products (2015), provisional duties on seamless tubes and pipes (2016), and duties on specific Chinese steel types in 2023. These measures, under the Customs Tariff Act, aim to level the playing field for Indian manufacturers.
Safeguarding the Future of India’s Electrical Steel Sector
The five-year anti-dumping duty on Chinese electrical steel is crucial for the long-term viability and growth of India’s domestic industry. It provides a protective shield against cheap imports, allowing Indian manufacturers to compete fairly, invest in modernization, and contribute to the “Make in India” vision. This measure fosters a more resilient and self-reliant steel sector, vital for India’s economic and industrial development.
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