Executive Summary:
The Ministry of Steel addressed Lok Sabha question 2687 on August 5, 2025, regarding strategies to reduce dependence on steel imports and boost exports. The government facilitates the steel sector's development through policy, while import/export decisions are made by steel companies. Key initiatives include promoting domestic manufacturing, ensuring steel quality, and implementing trade measures.
Key Points / Main Content:
Government's Role:
* Acts as a facilitator by creating a conducive policy environment for the steel sector.
* Import/export decisions are made by steel companies based on techno-commercial considerations and market dynamics.
Domestic Production and Export:
* India is the world's second-largest steel producer.
* In FY2024-25, India's finished steel production was 146.69 MnT, and exports were 4.86 MnT.
Measures to Reduce Imports and Improve Competitiveness:
* Implementation of Domestically Manufactured Iron & Steel Products (DMISP) Policy.
* Launch of Production Linked Incentive (PLI) Scheme for Specialty Steel.
* Introduction of Steel Quality Control Order.
Union Budget 2024-25 Measures:
* Basic Customs Duty (BCD) reduced from 2.5% to Nil on Ferro-Nickel and Molybdenum ores and concentrates.
* BCD exemption on Ferrous Scrap continued up to 31.03.2026.
* Exemption on specified raw material for Cold Rolled Grain Oriented (CRGO) steel manufacture continued up to 31.3.2026 and extended to CRGO Steel under tariff item 7226 11.00.
Trade Remedies:
* Anti-Dumping Duty (ADD) measures on specific steel products from China PR, Korea RP, Japan, Singapore, Vietnam, and Thailand.
* Countervailing Duty (CVD) on Welded Stainless Steel Pipes and Tubes from China and Vietnam.
* Provisional safeguard duty of 12% ad valorem for 200 days on imports of certain Non-Alloy and Alloy Steel Flat Products.
Import Monitoring:
* Steel Import Monitoring System (SIMS) revamped; SIMS 2.0 launched on 25.07.2024.
Impact Analysis:
Domestic Steel Manufacturers:
Impact: Benefit from policies promoting domestic production, reduced input costs, and protection against substandard imports and unfair trade practices.
Action Required: Leverage incentives, ensure product quality compliance, and monitor import trends via SIMS 2.0.
Steel Importers:
Impact: Subject to stricter quality controls, potential duties (ADD, CVD, safeguard duty), and import monitoring.
Action Required: Ensure compliance with Steel Quality Control Order, monitor applicable duties, and adhere to SIMS 2.0 requirements.
Government:
Impact: Responsible for implementing and monitoring the effectiveness of policies and trade measures.
Action Required: Continue to refine policies, enforce quality standards, and monitor the steel sector's performance.
Key Entities Referenced
Ministry of Steel: The Government of India ministry responsible for the development of the steel sector.
SHRI H.D. KUMARASWAMY: The Minister of Steel.
Domestically Manufactured Iron Steel Products DMISP Policy: Policy for promoting Made in India steel for Government procurement.
Production Linked Incentive PLI Scheme for Specialty Steel: Scheme to promote the manufacturing of 'Specialty Steel' within the country and reduce imports.
Steel Quality Control Order: Order banning substandard defective steel products in the domestic market and imports.
Union Budget 202425: The annual financial statement of the Government of India for the fiscal year 2024-2025, which included measures to support domestic steel manufacturers.
China PR: The People's Republic of China, a country subject to anti-dumping and countervailing duties on certain steel products.
Steel Import Monitoring System SIMS: System revamped to more effectively monitor imports to address the concerns of the domestic steel industry.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 2687
FOR ANSWER ON 05.08.2025
REDUCING DEPENDENCE ON STEEL IMPORTS TO BOOST EXPORTS
2687. SHRI DILESHWAR KAMAIT:
Will the Minister of STEEL be pleased to state:
(a) the major strategies adopted by the Government to reduce dependence on imports
and boost steel exports;
(b) whether the said strategies have lead to improvement in domestic production and
export performance; and
(c) if so, the major achievements made so far towards strengthening India's position
in the global steel sector?
ANSWER
THE MINISTER OF STEEL (SHRI H.D. KUMARASWAMY)
(a)to(c): Steel is a deregulated sector and the Government acts as a facilitator by creating
a conducive policy environment for the development of steel sector in the country.
The decisions regarding import and export are taken by the steel companies based on techno-
commercial considerations and market dynamics.
India is the world’s second-largest steel producer. During the financial year 2024-25,
India’s finished steel production and exports were 146.69 MnT and 4.86 MnT, respectively.
Government has taken following steps to facilitate the reduction of Steel imports and to
improve the competitiveness of domestic steel manufacturers to reduce dependency on
imports:-
i. Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP)
Policy for promoting ‘Made in India’ steel for Government procurement.
ii. Launch of Production Linked Incentive (PLI) Scheme for Specialty Steel to
promote the manufacturing of 'Specialty Steel' within the country and reduce
imports by attracting capital investments.
iii. Introduction of Steel Quality Control Order thereby banning sub-standard/
defective steel products in domestic market as well as imports to ensure the
availability of quality steel to the industry, users and public at large.
Contd…..2/-: 2 :
iv. In the Union Budget 2024-25, following measures were taken to support domestic
manufacturers and boost domestic steel manufacturing:-
a. Basic Customs Duty (BCD) has been reduced from 2.5% to Nil on Ferro-Nickel
and Molybdenum ores and concentrates which are raw materials for steel
industry.
b. BCD exemption on Ferrous Scrap has been continued upto 31.03.2026.
c. The exemption on specified raw material for manufacture of Cold Rolled Grain
Oriented (CRGO) steel has been continued up to 31.3.2026. Further, the
exemption has also been extended to such specified raw materials for
manufacture of CRGO Steel falling under tariff item 7226 11.00.
v. Anti Dumping Duty (ADD) measures pertaining to some steel products like
seamless tubes, pipes and hollow profiles of iron, alloy, or non-alloy steel (other
than cast iron and stainless steel) (from China PR), electro-galvanized steel
(from Korea RP, Japan, Singapore), stainless-steel seamless tubes and pipes
(from China PR), welded stainless steel pipes and tubes (from Vietnam and
Thailand) are in place currently.
vi. Countervailing Duty (CVD) is in place for Welded Stainless Steel Pipes and
Tubes from China and Vietnam.
vii. Government has imposed a provisional safeguard duty at the rate of 12%
(twelve percent) ad valorem for 200 days on imports of certain Non-Alloy and
Alloy Steel Flat Products.
viii. Steel Import Monitoring System (SIMS) has been revamped and SIMS 2.0 was
launched on 25.07.2024 for more effective monitoring of imports to address the
concerns of domestic steel industry.
*****