India Considers Raising Import Duty on Steel to Support Rupee: Report


India Considers Raising Import Duty on Steel to Support Rupee: Report

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 reviewed by Reuters, 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. The steel and trade ministries did not respond to requests seeking comment. Read More

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