The Indian government is considering expanding its strict quality standards to address the rising influx of substandard steel imports, particularly from China. This decision follows a recent review by the Ministry of Steel, which highlighted concerns about global trade diversions impacting the steel sector.
India became a net importer of steel during the first five months of the current financial year, with imports reaching 3.45 million tons, compared to 1.92 million tons of exports. The surge in imports is attributed to global producers seeking new markets due to weak demand and high tariffs imposed by the US and the EU. This has raised the risk of steel dumping into India.
In response, the government is tightening its quality control measures to limit the entry of non-compliant steel. Currently, several steel grades can be imported with a no-objection certificate (NOC) from the steel ministry, despite existing quality control orders (QCOs). However, the government plans to issue NOCs only for steel grades that are not produced domestically, aiming to close loopholes in the system.
India currently imports around 400,000 tons of non-BIS-compliant steel annually, valued at approximately Rs 4,200 crore (USD 504 million). To control substandard imports further, the government previously mandated that non-BIS-compliant steel must be cleared by the steel ministry before import.
The Ministry of Steel has been consulting with industry stakeholders to address concerns about growing steel imports from China and Southeast Asia.
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