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India has launched an investigation to consider if it should impose a safeguard duty or a temporary tax to curtail unbridled steel imports, according to a government notice on Friday.

The probe comes after Indian Steel Association, which represents top steelmakers such as ArcelorMittal Nippon Steel India Ltd, JSW Steel Ltd, Jindal Steel and Power, filed a petition to initiate an investigation concerning imports of "Non-Alloy and Alloy Steel Flat Products" into India.

India's finished steel imports from China reached an all-time high during the first eight months of the fiscal year to March 2025, according to provisional government data reviewed by Reuters on Friday, adding to concerns among domestic mills about cheap shipments from China.

"There is a recent, sudden, sharp and significant increase in the volume of imports, which has caused significant injury to the domestic industry in India," ISA said in its petition.

The Directorate General of Trade Remedies, an arm of the federal trade ministry, which launched the probe, in a notice dated Dec. 19 said there is sufficient evidence of "a recent, sudden, sharp and significant increase in imports" to start a safeguard investigation.

An influx of cheap Chinese steel has forced India's smaller mills to scale down operations and consider job cuts, as the South Asian nation joins a growing list of countries contemplating action to stem imports.