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By Neha Arora
NEW DELHI (Reuters) - Signs of thawing ties a day after the leaders of India and China met are unlikely to deter New Delhi's plans to back tariffs on steel as they are not country-specific measures, a senior government official with direct knowledge of the matter said.
Mills in the world's second-biggest producer of crude steel have been battling an influx of cheap imports, particularly those from China, which touched a seven-year high during the period from April to August.
China's surging steel exports have sparked complaints from a growing number of countries, with some, such as Turkey and Indonesia, having imposed anti-dumping duties, saying a flood of cheap Chinese steel hurts domestic manufacturers.
Last week, Reuters reported that India's steel ministry was backing a temporary tariff or "safeguard duty", a broad measure that also covers countries with which the South Asian nation has free trade pacts.
But a day after Prime Minister Narendra Modi and Chinese President Xi Jinping held their first formal talks in five years on the sidelines of a BRICS summit in Russia, the source said the thaw had not led to a change in the tariff plan.
"If it is put up, it will be against everybody, all countries," added the source, who spoke on condition of anonymity, as deliberations are not public. "Safeguard is not directed against any particular country."
A decision on the plan to levy such a tariff would take up to six months, the source added.
Spokespersons for India's ministries of steel and finance did not immediately respond to a Reuters email to seek comment.
Rapid economic growth and higher infrastructure spending have turned India into a global hotspot for growth in steel demand as markets stay subdued in Europe and the United States.
New Delhi has been a net importer since last financial year.
India's top steel producers, such as JSW Steel, Tata Steel and ArcelorMittal Nippon Steel India, have raised concerns about cheaper imports from China.
On Wednesday, the two most populous nations, both nuclear powers, agreed to boost communication and co-operation to mend ties frayed after a military clash on their Himalayan frontier in 2020 that killed 20 Indian and four Chinese troops.
(Reporting by Neha Arora; Editing by Clarence Fernandez)
