India is likely to impose a temporary safeguard duty of up to 25% on steel imports to counter cheap supplies from China, according to industry and government sources.

The proposal gained support after assurances were given to small industries that they would receive steel at reduced prices, about 20% below market rates.

The Directorate General of Trade Remedies is investigating the impact of Chinese imports on domestic steelmakers, with findings expected within a month.

Major producers like JSW Steel and Tata Steel have raised concerns over record-high imports, making India a net importer of steel.

If implemented, the duty would apply to flat steel products for two years, as proposed by the steel ministry.