In a move that has sent shockwaves across the steel industry, India's Ministry of Steel has widened import restrictions on steel and steel-related products, sparking concerns over supply chain disruptions, financial losses, and potential plant shutdowns, especially among small and medium-sized enterprises.
According to government officials and industry sources cited by SteelOrbis, the new rules now extend beyond finished and semi-finished steel, requiring that all raw and intermediate materials used in steelmaking and imported into India must comply with mandatory Quality Control Orders (QCOs). These orders mandate strict adherence to specifications laid down by the Bureau of Indian Standards (BIS).
The rule, which took effect from June 16 for all bills of lading, was implemented with virtually no notice, leaving businesses scrambling to adapt. Industry stakeholders have criticized the abruptness of the decision, noting that BIS certification typically requires a 6–9 month process including physical verification of foreign plants, making immediate compliance almost impossible.
The Global Trade Research Initiative (GTRI), an independent think tank, warned that the policy could lead to massive losses and plant closures, particularly for micro, small, and medium enterprises (MSMEs) reliant on imported semi-finished steel. "Many of these businesses have already paid for shipments that are now considered non-compliant," GTRI stated in its report.
Importers are now at risk of having their goods declared non-compliant, even if contracts were signed months ago and goods are already in transit. GTRI also criticized the lack of stakeholder consultation, noting that the new traceability rules were enforced with just three days’ notice, placing the industry in a precarious position.
VietnamSteel by Hoa Sen Group
