Proposal to Raise Import Duty on Steel in Order to Boost the Rupee

Government is considering the proposal to raise import duty on steel in order to boost the falling Indian currency.

It was reported that the import duty will be increased from the current rates of 5 percent to 12.5 percent to 15 percent.

(Photo: AP)

The steel ministry may consider increasing the effective import duty on some steel products of upto 15 percent in order to support the rupee, Reuters reported citing sources and a government document.

It was reported that the import duty, if increased, will go up from the current rate of 5 percent to 12.5 percent.

The proposal is said to be the part of a larger plan by the government to cut unnecessary imports thereby curbing the expenditure  that is related to the decline in the value of rupee.

“The broader message is to address the trade balance but we will try to promote ‘Make in India’ by encouraging domestic (steel) production,” Reuters quoted their source as saying.

However, the Reuters report also said that there is no certainty about this move. The officials from the steel and trade ministry were to meet on this issue on Wednesday, 19 September but the meeting did not take place.

This comes after the government had announced a slew of steps that will be taken to curb the decline in the value of rupee.

(With inputs from Reuters)