New Steel Import Rule Sparks Fear of MSME Shutters

The steel ministry's expansion of quality control standards to include raw materials could severely impact MSMEs reliant on semi-finished steel imports. The new rules, effective June 16, may lead to significant losses and shutdowns, as many firms face non-compliance despite prior contracts.

The Indian steel ministry's recent expansion of quality control standards has roused significant concern among MSMEs reliant on semi-finished steel imports. This policy change mandates that not only the steel products but also the raw materials adhere to Indian Standards (IS).

The order, applicable to shipments billed on or after June 16, threatens financial strains and potential closures for small manufacturers. Many businesses, having already paid for imports now deemed non-compliant, fear substantial financial losses.

Critics, including GTRI's Ajay Srivastava, argue the abrupt enforcement disregards industry preparedness, risking non-compliance for goods in transit. The lack of stakeholder consultation and the lengthy BIS certification process add to the controversy surrounding the new requirements.

(With inputs from agencies.)