ICEMA requires governments to reassess the long-term impact of steel safeguards responsibilities
New Delhi, April 22 (PTI) The Indian Construction Equipment Manufacturers Association asked the government on Tuesday to reassess the long-term impact of the 12% safeguard obligation imposed on certain steel products, saying it is expected to undermine the industry’s supply chain and cost structure.
Steel is the most critical raw material in the construction equipment (CE) manufacturing industry, especially specialized high-response and performance grade steel, which is not currently produced in sufficient quantity or specifications in India, the Indian Construction Equipment Manufacturers Association (ICEMA) said in a statement.
“Because these materials are largely imported, imposing a safeguard obligation immediately undermines the manufacturer’s ability to procure basic inputs, threatening production continuity and timely delivery of equipment,” it said.
India imposed a 200-day temporary safeguard tax on five steel product categories, including coils, sheets and plates for hot coils, to protect domestic participants from the influx of imports.
The decision follows the recommendations of DGTR, the Investigation Division of the Ministry of Commerce. Last month, DGTR recommended imposing responsibilities.
“The CE industry urges the government to urgently reassess the long-term impact of safeguard obligations and consider mitigation measures to mitigate the blow to downstream industries,” Icema said.
It further stated: “A balanced, data-driven policy that supports important sectors such as domestic steel manufacturers and construction equipment manufacturing is crucial to protect India’s infrastructure ambitions and global competitiveness.”
The CE industry organization even said before the announcement that the launch of guarantee inquiries has triggered a large number of price fluctuations.
“The steel price has risen by about 100% ₹During the investigation, the profit margin of extrusion was already narrowed. With the 12% responsibility now officially levied, the cost of input is expected to rise further, forcing CE manufacturers to consider rising, which will ultimately affect the cost of infrastructure projects nationwide. ” Icema said.
The decision also has the potential to undermine India’s export competitiveness in the global construction equipment market, especially when international buyers are actively seeking Chinese alternatives under the “China Plus One” procurement strategy.
ICEMA warns that Indian CE manufacturers may lose momentum when capturing global market share as input costs rise and flexibility decreases, a setback in establishing India as a broader goal of global manufacturing hub.
