Ministry Strengthens Steel Quality Norms to Safeguard Domestic Industry

To date, the Ministry has notified 151 Quality Control Orders, affirming its long-term commitment to establishing a robust steel standards regime in India.

In a major move to fortify the quality and competitiveness of India’s steel industry, the Ministry of Steel has issued a significant clarificatory order dated 13th June 2025, reiterating that intermediate steel products used in the manufacture of finished goods must also comply with applicable BIS (Bureau of Indian Standards) norms. While no new Quality Control Order (QCO) has been issued since the last one in August 2024, this latest directive is aimed at ensuring fair competition, preventing substandard steel imports, and preserving the integrity of BIS-certified final products.

To date, the Ministry has notified 151 Quality Control Orders, affirming its long-term commitment to establishing a robust steel standards regime in India. The latest order ensures that compliance extends across the entire value chain—from raw material to finished product.

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Ensuring Parity Between Domestic and Imported Steel

One of the key motivations behind the June 2025 clarification is the lack of parity between domestic producers and importers of finished steel goods. Indian steel manufacturers are mandated to use BIS-compliant intermediate inputs like HR (Hot Rolled) or CR (Cold Rolled) coils. In contrast, imported finished products have been entering the market without verification of the quality of their core raw materials.

This disparity places domestic steelmakers at a disadvantage, as imported products could be using non-compliant or inferior intermediate materials, yet still pass as BIS-compliant if the final process meets standards superficially.

For instance, coated steel—a major import into India—uses HR/CR coils as the base material. If the base is not BIS-certified, the end product cannot genuinely adhere to BIS standards, even if the coating meets technical specifications. The new clarification closes this regulatory gap, compelling importers to ensure that their entire supply chain meets Indian quality norms.

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Shielding Indian Markets from Dumping of Substandard Steel

India stands out as the only major economy with consistent double-digit growth in steel consumption—over 12% annually for the past three years. This boom is driven by an explosion of infrastructure projects, real estate growth, and manufacturing expansion, especially in capital goods and defence production.

Meanwhile, steel consumption in other major global economies is stagnating or declining. This contrast, coupled with excess global steel capacity, especially in countries with high export dependence, has made India a prime target for dumping cheap and substandard steel.

The Ministry of Steel’s directive serves as a proactive safeguard against this threat. It aims to block the entry of low-grade steel, which, if left unchecked, could disrupt domestic pricing, undercut local industries, and jeopardize employment in the small and medium steel sector.

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Integrated Steel Plants: Streamlined Compliance

The Ministry has also provided clarity for integrated steel plants, which manufacture both intermediate and final products in-house. These plants, when granted BIS certification, are evaluated across their entire production process. Hence, they do not require separate licenses for each stage of production.

The Ministry has indicated it will issue additional clarifications regarding such plants following consultations with BIS. This aims to reduce redundancy in certification and enhance ease of doing business for large-scale domestic producers.

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Addressing Concerns Over Price Hikes

In response to concerns about a potential price rise due to stricter quality enforcement, the Ministry has categorically dismissed such fears as unfounded. India currently possesses a robust steel manufacturing capacity of approximately 200 million tonnes per annum, more than sufficient to meet current and near-term domestic demand.

As a result, there is no foreseeable supply-side constraint that could justify an upward price pressure due to the June 2025 clarification. Rather, the policy ensures that consumers get quality steel at fair market value, eliminating the risks associated with substandard imports.

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Long-Term Vision: India’s Steel Capacity Targets and Investment Needs

India’s steel sector is at a critical juncture. With steel consumption surging, the government has projected a requirement of:

• 300 million tonnes of steel capacity by 2030, and

• 400 million tonnes by 2035

Achieving this will necessitate capital investments exceeding USD 200 billion by 2035. However, if cheap and inferior quality imports erode the profitability of domestic producers, their ability to invest and expand capacity could be severely hampered.

Moreover, such disruptions could lead to massive job losses, especially in the micro, small, and medium steel manufacturing segments, threatening the employment of lakhs of workers.

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Learning from Global Best Practices

India’s approach is not unprecedented. Globally, many countries have taken steps to safeguard their steel sectors, including:

• Tariff Rate Quotas (TRQs)

• Anti-dumping duties

• Sector-specific tariffs and safeguards

India’s latest policy initiative aligns with these global practices, ensuring that the integrity and sustainability of the domestic steel industry is preserved in a highly competitive international market.

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A Balanced Approach to Growth and Quality

The Ministry of Steel’s June 2025 order is a measured and timely intervention to align India’s steel policy with the country’s strategic goals of self-reliance, infrastructure development, and employment generation. By reinforcing the quality framework and ensuring a level playing field, the order seeks to protect Indian producers and consumers alike, while positioning India as a global leader in high-quality steel production.