The steel industry, which plays a significant role in India’s economic growth, is in a serious crisis as more than 10,000 steel user units are facing operational disruptions and financial difficulties. The India-based Global Trade Research Initiative (GTRI) cites port delays, slowness in customs clearance and difficult legal procedures as the main causes of these problems.
Delays at ports prevent imported steel from reaching factories on time, creating serious disruptions in the supply chain. The disruption of production processes and failure to fulfill export commitments undermine the sector’s global competitiveness. The regulations implemented to protect local steel producers create challenges for industries dependent on imported steel.
Especially in steel imports, quality control and electronic monitoring system are among the major problems faced by businesses. While quality control requires registration of certain steel products with the Bureau of Indian Standards (BIS), slow approval processes delay imports. Electronic monitoring system, on the other hand, demands detailed information from importers but makes the process difficult due to operational glitches. Moreover, Free Trade Agreements (FTAs) are adding new competitive pressures to the sector. Cheaper foreign steel imports are making it difficult for local manufacturers to compete in the global market.
GTRI states that regulatory processes need to be simplified and digitized to solve these problems. It also emphasizes the importance of implementing balanced policies that both protect local producers and support import-dependent sectors.
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