India weighs temporary tax on cheap Chinese steel import, minister says

India could impose a temporary tax of 15 percent-25 percent on steel from China in as soon as six months because of the "serious challenge" to domestic producers from cheap imports, Steel Minister HD Kumaraswamy said.

"Rising Chinese steel imports, often aided by unfair trade practices, pose a serious challenge to Indian manufacturers," Kumaraswamy told Reuters in an interview late on Tuesday. "The government is resolute in its commitment to protecting the Indian steel industry," Kumaraswamy added.

New Delhi began an investigation in December into whether to impose a temporary tax, known locally as a safeguard duty, to curb steel imports. If adopted, it could remain in force for as long as two years.

"Based on ongoing investigations, safeguard duties in the range of 15-25 percent are being considered to prevent unfair competition and ensure a level playing field," the minister said.