According to a report by ICRA Limited, an Indian credit rating agency, on March 25, 2025, if the Indian government approves a 200 day 12% safeguard tariff on all imports of alloy steel and non alloy steel sheets, including stainless steel, the import volume of Indian steel in the 2025-2026 fiscal year may decrease by 50%.

The proposal was put forward by the General Directorate of Trade Remedies (DGTR) of India, aimed at curbing imports and enhancing the profitability of domestic steel companies, with the final decision-making power in the hands of the Ministry of Finance.

Jirish Kadam, Senior Vice President and Head of Corporate Ratings at ICRA, predicts that the reduction in imports coupled with an expected 7-8% increase in domestic steel demand will drive capacity utilization from 78% in the 2024-2025 fiscal year to 83% in the 2025-206 fiscal year.

Credit rating agency Crisil Intelligence research director Seymour Bart pointed out that temporary tariffs will provide price stability for local producers, especially in the first half of the fiscal year.