India considers raising import duty on steel to support rupee
India’s steel ministry has proposed increasing the effective import duty on some steel products to 15 percent from current rates ranging from 5 percent to 12.5 percent, according to two sources and a government document, as the country looks to support the rupee.
The proposal, which is part of a broader government plan to cut “non-necessary” imports to stop an outflow of dollars that has sent the rupee to record lows, will be discussed in the trade ministry on Wednesday, according to one source with knowledge of the matter.
“The broader message is to address the trade balance but we will try to promote ‘Make in India’ by encouraging domestic (steel) production,” said the source, who declined to be named ahead of a possible decision.
The source said there was no certainty that the proposed duty would be imposed.
Shares of Indian steel companies jumped after the news. In afternoon trading, JSW Steel Ltd was up 3.3 percent, while Tata Steel Ltd and Jindal Steel and Power Ltd rose by more than 2 percent. State-run Steel Authority of India Ltd also rose by more than 2 percent.