The Indian government is taking strategic steps to ensure the availability of affordable steel in the country while strengthening domestic production and reducing dependence on imports. The Ministry of Steel announced several measures aimed at promoting self-reliance, improving competitiveness, and fostering investment in the sector.
Production-Linked Incentive (PLI) Scheme to Boost Domestic Steel Output
One of the key initiatives is the Production-Linked Incentive (PLI) Scheme for Specialty Steel, designed to attract capital investments and enhance manufacturing capacity. The scheme is expected to bring in Rs 27,106 crore in investments and add nearly 25 million tonnes (MT) to the country’s specialty steel production. This move is targeted at reducing the need for imports and improving India’s position in the global steel market.
Quality Control and Monitoring System Overhaul
The government has also strengthened its Steel Quality Control Orders, banning substandard and defective steel products from the domestic market. This ensures that both locally produced and imported steel meet industry standards. Additionally, the Steel Import Monitoring System (SIMS 2.0), launched in July 2024, has been revamped to enhance monitoring and address concerns raised by Indian manufacturers.
Promoting ‘Made in India’ Steel for Government Projects
To boost domestic consumption, the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy has been enforced for public procurement. This mandates government projects to prioritize Indian-made steel, ensuring steady demand for local producers.
Anti-Dumping and Countervailing Duties to Protect Local Industry
The government continues to impose anti-dumping duties on specific steel products imported from countries like China, Korea, Japan, Vietnam, and Thailand. These include seamless tubes, electro-galvanized steel, and stainless-steel pipes. Additionally, countervailing duties have been placed on welded stainless steel pipes from China and Vietnam to prevent unfair trade practices.
Ensuring Raw Material Availability
India’s domestic iron ore reserves are sufficient to meet current demand. The country produced over 270 million tonnes of iron ore in FY24, with exports at 46 million tonnes and imports at 4.9 million tonnes. The government has initiated mining policy reforms to increase supply, accelerate the auctioning of expired mining leases, and promote the Steel Scrap Recycling Policy, which encourages sustainable steel production.
With these strategic interventions, India is set to enhance its steel manufacturing capabilities, reduce costs, and strengthen its global competitiveness while ensuring a stable supply for domestic consumption.
