New Delhi, April 23 -- The imposition of a 12 percent safeguard duty on five categories of steel products could effectively halt imports and compel buyers to purchase from domestic manufacturers, who are set to increase prices following the levy.

According to the Global Trade Research Initiative (GTRI) since Indian producers cannot meet demand for specialised steels such as abrasion-resistant plates, imports remain essential for many industries, the new safeguard duty could increase input costs by 8-10 percent, mirroring recent price hikes already implemented by local steel mills.

Federation of Indian Micro and Small & Medium Enterprises (FISME), the leading MSME body of the country, has termed the decision to impose safeguard duty as a...