In a significant push to strengthen domestic manufacturing and reduce reliance on steel imports, the Government of India has implemented a series of strategic initiatives aimed at boosting the competitiveness of the domestic steel industry. With India being the world’s second-largest steel producer, the focus has now shifted to expanding exports and meeting the growing domestic demand, while limiting dependence on foreign suppliers.
The steel sector in India is deregulated, with companies taking their own commercial decisions regarding imports and exports. However, the government plays a key facilitative role by creating a favourable policy environment. In the financial year 2024-25, India produced 146.69 million tonnes (MT) of finished steel and exported 4.86 MT. Crude steel production rose from 144.30 MT in 2023-24 to 152.18 MT in 2024-25, marking a 5.5% year-on-year increase. Meanwhile, finished steel consumption jumped significantly by 11.6%, from 136.29 MT to 152.13 MT over the same period.
To reduce steel imports and promote domestic production, several policy measures have been introduced. One of the cornerstone initiatives is the implementation of the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy, which encourages the use of ‘Made in India’ steel in government procurement. The Production Linked Incentive (PLI) Scheme for Specialty Steel has also been launched to attract capital investment and promote domestic manufacturing of high-end steel products that are often imported.
The Union Budget 2024-25 included specific provisions to further support the domestic steel sector. Basic Customs Duty (BCD) on Ferro-Nickel and Molybdenum ores and concentrates, essential raw materials for steel production was reduced to nil. The exemption on ferrous scrap imports has been extended until March 31, 2026, along with continued duty exemption on specific raw materials used in manufacturing Cold Rolled Grain Oriented (CRGO) steel.
To ensure quality in the steel sector, the government introduced the Steel Quality Control Order, banning the production and import of substandard and defective steel products. This move aims to maintain high-quality standards across the industry and protect end users. Additionally, anti-dumping duties have been imposed on various steel products originating from countries such as China, Korea, Japan, Vietnam, and Thailand, to prevent market distortions and unfair trade practices. Countervailing duties are also in place for welded stainless steel pipes and tubes from China and Vietnam.
In another major move, the government has provisionally imposed a safeguard duty of 12% ad valorem for 200 days on the import of certain non-alloy and alloy steel flat products. This is expected to provide a temporary protective barrier for domestic producers against a surge in imports.
Furthermore, the Steel Import Monitoring System (SIMS) has been revamped. The upgraded SIMS 2.0 was launched on July 25, 2024, with enhanced features for more effective monitoring and data collection on imports. This will help the domestic industry track import trends and respond strategically.
These concerted efforts are aligned with the National Steel Policy, 2017, which aims to achieve a crude steel capacity of 300 million tonnes and a production level of 255 million tonnes by 2030. Driven by rising domestic demand, infrastructure growth, and an export-oriented outlook, India is strategically positioning its steel industry for sustained growth and global competitiveness.
