Japan nudges India for exemption from steel import tariff: report

Japan has nudged India to exempt it from any potential temporary tax aimed at curbing rising steel imports, Reuters reported, citing documents and an unidentified person aware of the plans.

Tokyo argues that such a move would crimp supplies of high-grade, specialty alloys that Delhi needs, the report said. India is the world’s biggest crude steel producer.

This development comes against the backdrop of the Indian government’s ongoing investigation into whether it can impose a temporary tax, locally known as safeguard duty, to slash steel imports.

In December, steel minister H.D. Kumaraswamy said a probe was underway.

In last month’s India-Japan Steel dialogue held in Delhi, a Japanese delegation comprising government and industry officials reportedly presented how high-performance Japanese steel products are exported to meet the demand for high-performance steel in India.

The Japanese delegation said these products cannot be made domestically in India and that even if they are manufactured, their quality and quantity do not meet the requirement standards of domestic consumers.

The Japanese embassy in India and India’s steel ministry did not respond to emails seeking comments.

Last month, when imported steel containers were stranded at Jawaharlal Nehru Port Trust and other ports amid complex clearance procedures by the steel ministry, Tokyo formally requested Delhi to release the shipments.