Indian govt imposes no objection certificate norm for imports of non-standard steel grades

The Indian government has implemented a strict approval process to regulate steel imports, requiring a No Objection Certificate (NOC) for importing non-standard steel grades. This move aims to address the challenge of low-quality steel imports, which has been a persistent issue despite the government's efforts to ensure quality control.

The Bureau of Indian Standards (BIS) has notified 151 standards covering 1,376 steel grades, ensuring that both domestic and imported steel adhere to these norms. Additionally, the Ministry of Steel has imposed Quality Control Orders (QCOs) to further strengthen quality control.

The Ministry of Steel's efforts to regulate steel imports, including the requirement of NOCs, are essential in protecting the domestic industry and promoting fair trade practices.

Rising steel imports and domestic production

India's steel imports witnessed an increase of 64% y-o-y to 4.62 million tonnes (mnt) in H1FY'25 as against 2.81 mnt in the H1FY'24. While this may not seem significant relative to the country's total steel consumption, the influx of cheaper imports is impacting domestic steel prices, affecting both large and small producers.

India's domestic steel industry, particularly small-scale producers, plays a crucial role in the country's manufacturing sector. To meet the growing demand for steel, the government aims to increase domestic production capacity to 300 million tonnes by 2030. However, the influx of cheaper imports could hinder this goal.

Outlook

The Indian government's focus on quality control and stringent import regulations are crucial to safeguarding the domestic steel industry. By maintaining high standards and addressing the challenges posed by low-quality imports, India can ensure a sustainable and competitive steel sector.