Indian Steelmakers Urge Govt to Prioritize Local Sourcing

Indian stainless steel manufacturers have appealed to the government to ensure that sectors like automobiles and kitchenware procure locally produced steel instead of importing cheaper foreign alternatives. They are seeking a clear assurance that the current relaxation on stainless steel imports, which allows the sale of non-BIS-compliant products, will not be extended beyond December 31. Domestic producers argue that India has sufficient capacity to meet demand and can supply industries with high-quality steel.

The government extended the import relaxation to address raw material shortages, allowing foreign suppliers to sell non-BIS-compliant steel products in India. Domestic manufacturers warn that this creates an uneven playing field, as overseas steel is being sold at 20-25% lower prices while local producers adhere to strict BIS standards. They stressed that prolonged import relaxations could undermine the long-term stability of the Indian steel market, even though domestic production has significantly increased.

The broader steel sector is also facing challenges from low-cost imports, which have forced around 150 mills to shut down and prompted output cuts at another 50. Small and medium steel units, which account for nearly half of India’s production, are struggling due to high power and capital costs. While the government has imposed a 12% safeguard duty on certain flat steel imports, exemptions for developing countries mean Indian manufacturers still face competition from cheaper foreign steel, particularly from countries like China, where production costs are significantly lower.

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