India tightens steel procurement rules to boost domestic manufacturing
New Delhi: India has tightened its steel procurement rules to favour domestic manufacturers, as mills struggle with falling iron and steel prices due to a surge in cheaper imports, Reuters reported, citing a government notification.
Government data showed that India's finished steel imports from China, South Korea, and Japan reached a record high in the first 10 months of the previous financial year, which ended on March 31.
Under the "Domestically Manufactured Iron and Steel Products Policy 2025", all ministries, departments, and agencies under the Indian government must prioritise locally manufactured iron and steel products.
The policy, which will be in effect for five years, may be extended at the discretion of the Ministry of Steel, according to a gazette notification issued on April 1.
"Specifying foreign certifications or unreasonable technical specifications in bid documents is a restrictive and discriminatory practice against local suppliers," the notification stated.
As per the policy, foreign governments and entities that do not allow Indian mills to participate in their tenders will be barred from bidding for Indian government tenders, except for select items specified by the steel ministry.
However, the policy excludes steel grades that are not produced domestically or cases where local mills cannot meet the required quantity for a project.
The move comes weeks after the Directorate General of Trade Remedies (DGTR), under the trade ministry, recommended a temporary 12% tax for 200 days on certain steel imports to prevent "serious injury" to the domestic industry.
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