India’s steel ministry has proposed increasing the effective import duty on some steel products to 15 per cent from current rates ranging from 5 per cent to 12.5 per cent, according to two sources and a government document reviewed by Reuters, as the country looks to support the rupee.
The proposal is a 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.
‘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.
Steel and trade ministry officials were expected to meet on Wednesday to discuss the proposed import steps but the talks did not take place, one of the sources said, without giving details. The steel and trade ministries did not respond to requests seeking comment.
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