India has imposed a five-year anti-dumping duty on imports of cold-rolled non-oriented electrical steel from China. The move aims to safeguard domestic steelmakers from cheap imports that were affecting local production and profits.

The decision was notified by the Ministry of Finance on Thursday. The duty will range between USD 223.8 and USD 414.9 per tonne. Rates will differ based on the exporter and the particular product category. The government said the measure will stay in force for five years unless reviewed earlier.

The step follows a thorough investigation by the Directorate General of Trade Remedies (DGTR). The probe was conducted under the Customs Tariff Act and the Anti-Dumping Rules of 1995. Authorities found strong evidence of dumping by Chinese producers.

DGTR Finds Injury to Domestic Industry

The DGTR concluded that Chinese companies were exporting CRNO steel to India at prices below their normal market value. These dumped imports were found to be triggering material injury to Indian manufacturers.

Domestic producers reported falling prices in the market. Sales volumes dropped gradually. Profit margins were also under pressure. In some cases, losses increased despite stable demand from key sectors.

The investigation also noted future risks. It stated that if corrective steps were not taken, the injury to the domestic industry could worsen. Excess capacity and aggressive pricing by Chinese exporters were highlighted as major concerns.

CRNO steel plays a vital role in the power and manufacturing sectors. It is widely used in electric motors, generators, and transformers. The product falls under tariff headings 7210, 7225, and 7226.

What the Duty Covers and Excludes

The anti-dumping duty will apply to imports originating in or exported from China. Only producers and exporters listed in the official notification will be covered. Each company will face a different duty rate, depending on the findings.

However, the DGTR clarified one key exclusion. Cold Rolled Full Hard Silicon Electrical Steel, or CRFH, will not attract the duty. This material is used as an input to manufacture CRNO steel. Officials said taxing CRFH could disrupt downstream production.

The clear distinction aims to balance protection with supply needs. The government said it does not want to hurt industries that rely on raw materials for further processing.

Industry Complaint Leads to Government Action

The probe began after a formal complaint by Indian steel manufacturers. They alleged that Chinese imports were being dumped in the Indian market at unfair prices.

After months of examination, the DGTR confirmed the claims. It recommended imposing the anti-dumping duty. The government accepted the recommendation and issued the notification.

Industry players have welcomed the move. They say it will restore fair competition and support local manufacturing. Importers, however, may see higher costs in the short term.

The five-year anti-dumping duty marks a firm step by India to shield its steel industry. By addressing unfair pricing, the government aims to ensure fair trade, protect jobs, and strengthen domestic manufacturing capacity.