India’s New Steel Policy Strengthens Local Industry, Limits Imports

Breaking News

Govt Enforces ‘Melt and Pour’ Rule for All Steel in Public Projects Nippon Steel expected to finalize U.S. Steel acquisition at $55 per share NMDC Limited reports a 38% drop in Q4 FY24 consolidated net profit RINL to Raise $23 Million Through Land Sales Amid Crisis

India’s New Steel Policy Strengthens Local Industry, Limits Imports

Business 03 Apr 2025 03:21 PM IST The Hindu BusinessLine

The Indian government has strengthened its steel procurement policy to prioritize domestic manufacturers and ensure a level playing field in global trade. The revised policy mandates the use of locally produced steel in government contracts and introduces a reciprocity clause, targeting nations that impose trade restrictions on Indian steel exports.

Key Policy Changes

1️⃣ Preference for Domestic Steel – All government projects must source a minimum percentage of steel from domestic producers to support local industries.
2️⃣ Reciprocity Clause Introduced – Countries restricting Indian steel exports may face similar barriers when exporting steel to India.
3️⃣ Stronger Compliance & Monitoring – The government will track and enforce procurement rules, ensuring transparency and adherence by contractors.

Impact on the Industry

✅ Boost for Indian Steelmakers – Increased demand for locally produced steel benefits major players like SAIL, Tata Steel, JSW Steel, and AMNS India.
✅ Supply Chain Adjustments – Infrastructure developers and EPC contractors must align procurement strategies with the new norms.
✅ Trade Relations Implications – The reciprocity clause may impact steel imports from countries like China and South Korea, leading to possible trade negotiations.

Industry Reactions & Next Steps

Steel manufacturers have welcomed the move, seeing it as a protective measure against unfair trade practices. However, import-dependent industries are seeking clarifications on exemptions for specialized steel products not produced in India.

Also Read : CRISIL Sees Slower Growth for Steel MSMEs This Year India's Stainless Steel Industry Pushes for Safeguard Measures to Combat Cheap Imports

Breaking News