India's government is investigating rising steel imports, particularly in two categories of flat-rolled steel products (HS 7208 and 7210), which account for over 75% of the surge in imports. Instead of implementing global safeguards, experts suggest that India should focus on Free Trade Agreement (FTA)-specific safeguards and measures targeting China. Many imports come duty-free under FTAs with countries like Japan, South Korea, and Vietnam, while a significant portion comes from China with duties.

The investigation should prioritize these two categories of products since other categories show lower volumes or negative growth. By focusing on FTAs and China-specific actions, India can avoid disputes at the World Trade Organization (WTO), which could arise from using global safeguards.

Moreover, small and medium-sized enterprises (SMEs) in the steel sector could face greater challenges from global safeguards, as larger steel firms benefit from duty-free imports through FTAs and market dominance. These large producers have been profitable, with high margins, while SMEs struggle with internal inefficiencies and limited access to exemptions.

Experts highlight the need for balanced policies that support both large steel users, which contribute significantly to GDP, and smaller players to encourage innovation and fair competition in the steel industry.