The decision was taken after it was found that Chinese exporters were exporting steel products to other countries at a highly reduced price, sources said.

The decision was announced through a notification late on Monday evening by the finance ministry.

Last week, the steel ministry had said that it was monitoring the steel imports after it had received complaints of dumping of cheap Chinese steel products in India.

China was the biggest exporter of steel to India followed by South Korea during the April-July period of the current fiscal.

China mainly exports sheets or cold-rolled coils to India. It is also the world's top steel producer.