India Tightens Quality Control Norms for Steel to Boost Domestic Industry
In a bid to protect the domestic steel industry and elevate the quality of infrastructure, the Ministry of Steel has announced an expansion of the country’s quality control norms for steel. The new plan aims to regulate all steel grades—both produced domestically and imported—by enforcing stricter compliance with the Bureau of Indian Standards (BIS) specifications.
Currently, 1,376 steel items are covered under the Quality Control Order (QCO), and with the new policy, an additional 1,000 grades will be included. As part of the revised framework, only steel meeting the BIS standards will be permitted for market entry. For steel grades not currently under BIS regulations, a No Objection Certificate (NOC) will be required from the ministry before importation. A government official stated, “Our goal is to ensure that all steel grades conform to BIS standards within the next year. This initiative will serve as a non-tariff barrier to prevent low-quality steel from entering the market, thereby safeguarding domestic manufacturers and maintaining competitiveness.”
ICRA’s Ritabrata Ghosh emphasized that expanding the QCO could lead to a temporary reduction in steel imports, which currently amount to about 1 million tonnes per month. However, the long-term impact will hinge on how quickly international suppliers can secure BIS certification for their products. India’s steel industry faces considerable challenges, particularly with rising import volumes. The country’s steel sector requires an estimated Rs 10 trillion in investment by 2030-31 to increase production capacity from 180 million tonnes (MT) to 300 MT. However, the influx of cheaper imports from countries like Japan, Korea, and China—which is circumventing tariffs by exporting steel via Vietnam—continues to threaten domestic producers.
Once a net exporter of steel, India became a net importer in the last fiscal year, and the import-export gap is projected to hit an eight-year high of 11 MT in FY25. To address these challenges, the government is actively pursuing a combination of tariff and non-tariff measures. This includes a proposal to double the basic customs duty on steel imports to 15 percent, which is currently under review by the finance ministry. The Directorate General of Trade Remedies (DGTR) is also investigating the imposition of safeguard and anti-dumping duties on imports, particularly from Vietnam.
Furthermore, a proposal for a 25 percent safeguard duty on certain steel grades, irrespective of their country of origin, is also being considered. These protective measures are intended to ensure fair pricing, curb the impact of cheap imports, and attract investments to strengthen India’s steel manufacturing capabilities, thus supporting long-term growth in the sector. By tightening quality control and advocating for stronger trade protections, India aims to revitalise its steel industry, boost infrastructure development, and create a level playing field for domestic producers.
