India Tightens Steel Procurement Rules to Tackle Record Surge in Imports

India has strengthened its steel procurement regulations to support local manufacturing, as mills face challenges from decreased prices of iron and steel due to a significant surge in cheaper imports, according to a government notification.

According to government data, India's finished steel imports from China, South Korea, and Japan reached an all-time high in the initial 10 months of the last financial year that concluded on March 31.

The updated regulations specified in the "Domestically Manufactured Iron And Steel Products Policy 2025" require all ministries, departments, and agencies of the Indian government to emphasize the use of locally produced iron and steel products.

"Specifying foreign certifications or unreasonable technical specifications in bid document is a restrictive and discriminatory practise against local suppliers," the notification said.

According to the policy, foreign governments and entities that prevent Indian mills from taking part in their tenders will be barred from engaging in Indian government tenders, with the exception of certain items outlined by the steel ministry.

The policy, however, does not include steel grades not produced domestically or if local mills are unable to fulfill the quantity needed for a project.

The action follows a recommendation from the Directorate General of Trade Remedies, operating under the trade ministry, for a temporary 12 per cent tax on specific steel imports for 200 days to mitigate "serious injury" to the local industry.