Executive Summary:
This document is the answer to Lok Sabha Unstarred Question No. 3786, addressing the increase in steel imports in India. It outlines the reasons for the shift from net exporter to net importer, details the surge in imports, and describes government measures to support domestic steel producers, including MSMEs. The response also addresses the impact of the Quality Control Order on MSME players.
Key Points / Main Content:
* **Reasons for Import/Export Status Change:**
* Steel sector is deregulated; import/export decisions are based on techno-commercial considerations and market dynamics of steel companies.
* **Steel Import Details:**
* Steel imports increased from 6.022 MT in 2022-23 to 9.55 MT in 2024-25.
* Imports in the first quarter of FY 2025-26 were 1.38 MT.
* **Government Measures to Support Domestic Steel Producers:**
* 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 (QCO).
* Basic Customs Duty (BCD) reduced to Nil on Ferro Nickel and Molybdenum ores and concentrates in Union Budget 2024-25.
* BCD exemption on Ferrous Scrap continued up to 31.03.2026.
* Exemption on specified raw material for CRGO steel manufacture continued up to 31.3.2026 and extended to tariff item 7226 11.00.
* Anti-Dumping Duty (ADD) 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.
Impact Analysis:
Domestic Steel Producers (including MSMEs):
* Impact: Increased competition from imports; potentially higher production and import costs due to QCO. Benefit from government support measures.
* Action Required: Understand and comply with QCO; leverage government schemes and incentives to improve competitiveness.
Steel Companies:
* Impact: Need to make import/export decisions based on market dynamics, technical, and commercial factors.
* Action Required: Monitor market trends, assess the impact of trade remedies, and adjust import/export strategies accordingly.
Government:
* Impact: Revenue and regulatory oversight related to steel imports and domestic production.
* Action Required: Monitor the effectiveness of support measures, enforce quality standards, and address trade imbalances.
Steel Users and Public:
* Impact: Access to quality steel products.
* Action Required: Be aware of the Steel Quality Control Order.
Key Entities Referenced
Ministry of Steel: The Indian government ministry responsible for the development of the steel sector.
MS. S JOTHIMANI: Member of Parliament who raised the unstarred question in Lok Sabha regarding steel imports.
SHRI H.D. KUMARASWAMY: The Minister of Steel who provided the answer to the Lok Sabha question.
Domestically Manufactured Iron Steel Products DMISP Policy: A policy promoting the use of 'Made in India' steel for government procurement.
Production Linked Incentive PLI Scheme for Specialty Steel: A scheme to promote the manufacturing of specialty steel within India and reduce imports.
Steel Quality Control Order: An order banning substandard defective steel products in the domestic market and imports.
Union Budget 202425: The Indian government's budget for the fiscal year 2024-2025, which included measures to support domestic steel manufacturers.
China PR: The People's Republic of China, a country from which certain steel products are subject to anti-dumping duties.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 3786
FOR ANSWER ON 12.08.2025
SIGNIFICANT SURGE IN STEEL IMPORTS
3786. MS. S JOTHIMANI:
Will the Minister of STEEL be pleased to state:
(a) the reasons behind our country transitioning from a net exporter to a net importer
of finished steel and the key factors contributing to this reversal;
(b) whether there has been a sudden and significant surge in steel imports in recent
months and if so, the details thereof including import trends, country-wise;
(c) the measures being taken by the Government to support domestic steel producers,
particularly in light of increased import competition;
(d) whether the recent clarification on the Quality Control Order (QCO) issued by the
Ministry of Steel, mandating BIS compliance for intermediate goods, has increased
production and import costs for MSME players in the steel sector; and
(e) if so, the steps being taken to safeguard MSMEs from potential losses or
shutdowns, including any transitional support, exemptions, or relief mechanisms?
ANSWER
THE MINISTER OF STEEL (SHRI H.D. KUMARASWAMY)
(a)to(e): 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.
The import of steel had increased from 6.022 MT in 2022-23 to 9.55 MT in
2024-25. The steel imports in first quarter of FY 2025-26 are 1.38 MT.
Government has taken following steps to facilitate the reduction of Steel imports
and to improve the competitiveness of domestic steel manufacturers including MSMEs
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.
Contd…..2/-: 2 :
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.
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. Counter-Vailing 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.
*****