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Gauri S.

India to Tighten Steel Import Standards Amid Surge in Substandard Shipments



The Indian government is considering expanding its stringent quality standards in response to the increasing import of substandard steel, primarily from China, according to a report by The Economic Times. This move follows a comprehensive review by the Ministry of Steel in early October, which highlighted growing concerns over the sector's vulnerability to global trade diversions.


During the first five months of the current fiscal year, India became a net importer of steel, with official data showing imports reaching 3.45 million tonnes (mt), compared to exports of 1.92 mt. The surge in imports is attributed to global steel producers seeking alternative markets amid weak demand and high tariffs in the US and EU, raising concerns of potential steel dumping in India.


To mitigate this risk, the government is tightening quality control measures. Currently, various steel grades can be imported with a no-objection certificate (NOC) from the Ministry of Steel, despite existing quality control orders (QCOs). Going forward, however, NOCs will only be granted for steel grades not produced domestically. This step aims to ensure that imported steel meets Bureau of Indian Standards (BIS) requirements.


The Ministry of Steel has established norms for 1,279 steel grades under 151 QCOs, but 1,127 grades have so far been allowed entry with NOCs. Officials have indicated that this loophole will soon be closed with an expansion of QCOs to cover a broader range of steel grades.

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