“When the safeguard duty was introduced, the concern was cheaper imports and protection of the domestic steel industry. Rising input costs are squeezing already thin margins, making it difficult for MSMEs to remain competitive in both domestic and export markets. Our MSMEs are paying a much higher price for steel, and even after paying that price, they are struggling to get material. Ahuja urged the ministry of finance, ministry of steel, and ministry of commerce and industry to intervene and consider a temporary waiver or substantial relaxation of the safeguard duty until prices and availability stabilise. CICU has also called for close monitoring of domestic steel production, pricing, and supply practices. Ahuja further added, “Indian MSMEs need competitive raw material prices to compete with manufacturers globally. Protecting manufacturing employment and exports must remain at the centre of the policy. CICU senior vice-president JS Bhogal delivered a presentation highlighting Punjab’s industrial strengths and the roadmap for expanding international business linkages.
The safeguard duty was introduced in April 2025, when the government imposed a 12% duty for 200 days on specified flat steel imports. The measure was subsequently continued under a three-year structure, fixed at 12% in the first year, 11.5% in the second, and 11% in the third year. “If international HR coil prices are around $530 to $550 per tonne while Indian prices have crossed $640 per tonne, the government must examine why such a wide gap exists. MSMEs cannot continuously absorb ₹ 10 to ₹ 15 per kg increases in their raw material cost,” he added.
including engineering, auto components, bicycles, fasteners, fabrication, machinery, and electrical equipment While the policy was aimed at protecting CICU president Upkar Singh Ahuja said the impact is being felt across multiple steel-dependent sectors. Ahuja said the government’s initial objective to protect domestic steel producers from cheaper imports was understandable, but stated that the policy now requires reassessment. This is directly affecting their production, orders, employment, and exports,” Ahuja said.
Today, the situation has become different.
