New Delhi: In a robust move to fortify India’s steel sector and curb reliance on overseas markets, the Government has rolled out a comprehensive blend of policy and fiscal interventions aimed at bolstering domestic production. Minister of State for Steel and Heavy Industries, Bhupathiraju Srinivasa Varma, detailed these strategies in a written reply in the Rajya Sabha.
India, currently the world’s second-largest steel producer, recorded 146.69 million tonnes (MnT) of finished steel production and 4.86 MnT in exports during FY 2024–25.
Policy Thrust to Encourage ‘Made in India’ Steel
Recognising that the steel sector operates in a deregulated environment, the Government continues to play the role of facilitator by cultivating a supportive policy framework. One of the cornerstones of this approach is the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy, which mandates the use of ‘Made in India’ steel in government procurement projects.
This policy directly contributes to reducing imports while increasing demand for local manufacturers.
Incentives for Specialty Steel and Raw Material Support
To promote high-grade domestic steel production, the Government introduced the Production Linked Incentive (PLI) Scheme for Specialty Steel. The scheme aims to attract capital investments and build capabilities that would otherwise require costly imports.
In addition, the Union Budget 2024–25 extended key raw material support measures:
- Basic Customs Duty (BCD) on Ferro-Nickel and Molybdenum ores was slashed to zero.
- The BCD exemption on ferrous scrap was extended till 31 March 2026.
- CRGO steel manufacturers will continue receiving exemptions on essential raw materials through the same date.
These budgetary steps ensure cost competitiveness for domestic players across the value chain.
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Quality Assurance and Anti-Dumping Measures
The Steel Quality Control Order was introduced to block the influx of sub-standard steel—both from domestic and foreign sources, ensuring that only certified-quality steel enters the Indian market.
To shield domestic manufacturers from unfair pricing practices, the Government has imposed Anti-Dumping Duties (ADD) on a range of imports:
- Seamless tubes, pipes, and hollow profiles from China.
- Electro-galvanized steel from Korea, Japan, and Singapore.
- Stainless steel tubes and pipes from China, Vietnam, and Thailand.
Additionally, Countervailing Duties (CVD) are applicable on welded stainless steel pipes and tubes from China and Vietnam.
Provisional Safeguards and Monitoring Upgrades
A 12% provisional safeguard duty has been levied for 200 days on imports of certain non-alloy and alloy steel flat products, protecting local industries from sudden surges in imports.
Meanwhile, the Steel Import Monitoring System (SIMS) has undergone an upgrade with the launch of SIMS 2.0 on 25 July 2024. The system now enables real-time import tracking and tighter oversight, enhancing India’s ability to respond to trade distortions.
Also Read: India Eyes 300 MT Steel Production by 2030, Govt Tightens Quality and Price Controls
