**Policy Summary: Ministry of Steel - Reducing Dependence on Steel Imports to Boost Exports**
The Ministry of Steel outlines its approach to reducing reliance on steel imports and enhancing domestic steel production and exports. India, the world's second-largest steel producer, recorded a finished steel production of 146.69 Million Tonnes (MnT) and exports of 4.86 MnT in the financial year 2024-25. The government acts as a facilitator in this deregulated sector, creating a supportive policy environment.
Key initiatives to reduce imports and improve domestic competitiveness include:
1. **Domestically Manufactured Iron & Steel Products (DMISP) Policy:** Promoting the use of domestically produced steel in government procurement.
2. **Production Linked Incentive (PLI) Scheme for Specialty Steel:** Encouraging domestic manufacturing of specialty steel through capital investments to decrease imports.
3. **Steel Quality Control Order:** Banning substandard steel products, both domestic and imported, to ensure quality steel availability.
4. **Union Budget 2024-25 Measures:** Reduction of Basic Customs Duty (BCD) from 2.5% to Nil on Ferro-Nickel and Molybdenum ores and concentrates. Continuation of BCD exemption on Ferrous Scrap and specified raw materials for manufacturing Cold Rolled Grain Oriented (CRGO) steel up to March 31, 2026, including tariff item 7226 11.00.
5. **Trade Remedies:** Implementation of Anti-Dumping Duty (ADD) on specific steel products from countries including China PR, Korea RP, Japan, Singapore, Vietnam and Thailand, along with Countervailing Duty (CVD) on Welded Stainless Steel Pipes and Tubes from China and Vietnam.
6. **Safeguard Duty:** Imposition of a provisional safeguard duty of 12% ad valorem for 200 days on imports of certain Non-Alloy and Alloy Steel Flat Products.
7. **Steel Import Monitoring System (SIMS) 2.0:** Revamped and launched on July 25, 2024, for more effective import monitoring to address domestic industry concerns.
This information was provided by the Minister of Steel and Heavy Industries, Shri H.D. Kumarswamy, in a written reply in the Lok Sabha. Release ID: 2152527. Posted August 5, 2025.
Key Entities Referenced
Ministry of Steel: The Indian government ministry responsible for the development of the steel sector.
Domestically Manufactured Iron Steel Products DMISP Policy: A policy promoting the procurement of 'Made in India' steel by the government.
Production Linked Incentive PLI Scheme for Specialty Steel: A scheme designed to boost the manufacturing of 'Specialty Steel' in India by attracting capital investments and reducing imports.
Steel Quality Control Order: An order banning substandard steel products in the domestic market and imports to ensure the availability of quality steel.
Union Budget 202425: The annual financial statement of the Indian government 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.
Steel Import Monitoring System SIMS: A system used to monitor steel imports into India, with SIMS 2.0 being the updated version launched on 25.07.2024.
Shri H.D. Kumarswamy: The Minister of Steel Heavy Industries, who provided information in a written reply in the Lok Sabha.
Ministry of Steel
REDUCING DEPENDENCE ON STEEL IMPORTS
TO BOOST EXPORTS
Posted On: 05 AUG 2025 4:17PM by PIB Delhi
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 financialyear2024-25, India’s finished steel
production andexportswere146.69 MnTand4.86MnT, 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:-
1. Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for promoting
‘Made in India’ steel for Government procurement.
2. 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.
3. 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.
4. In the Union Budget 2024-25, following measures were taken to support domestic manufacturers and
boost domestic steel manufacturing:- 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.BCD
exemption on Ferrous Scrap has been continued up to31.03.2026.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.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.
5. Countervailing Duty (CVD) is in place for Welded Stainless Steel Pipes and Tubes from China and
Vietnam.
6. 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.
7. 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.
This information was given by the Minister of Steel & Heavy Industries, Shri H.D. Kumarswamy in a written
reply in the Lok Sabha today.
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TPJ/NJ(Release ID: 2152527)