**Summary: Strategies for Reducing Steel Import Dependence**
As of August 1, 2025, the Ministry of Steel outlined strategies to reduce India's reliance on steel imports. 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 is facilitating the development of the steel sector through a conducive policy environment, while import and export decisions are made by steel companies based on technocommercial considerations and market dynamics.
Key initiatives to reduce steel imports and enhance the competitiveness of domestic manufacturers include:
1. **Domestically Manufactured Iron & Steel Products (DMISP) Policy:** Promoting "Made in India" steel for government procurement.
2. **Production Linked Incentive (PLI) Scheme for Specialty Steel:** Encouraging domestic manufacturing of specialty steel through capital investments.
3. **Steel Quality Control Order:** Banning substandard steel products in the domestic market and imports.
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. Continued BCD exemption on Ferrous Scrap up to March 31, 2026. Continued exemption on specified raw material for manufacture of Cold Rolled Grain Oriented (CRGO) steel, including those under tariff item 7226 11.00, up to March 31, 2026.
5. **Anti-Dumping Duty (ADD):** Measures in place for specific steel products from countries including China PR, Korea RP, Japan, Singapore, Vietnam, and Thailand.
6. **Countervailing Duty (CVD):** In effect for Welded Stainless Steel Pipes and Tubes from China and Vietnam.
7. **Provisional Safeguard Duty:** A 12% ad valorem duty imposed for 200 days on imports of certain Non-Alloy and Alloy Steel Flat Products.
8. **Steel Import Monitoring System (SIMS) 2.0:** Launched on July 25, 2024, to monitor imports effectively and address domestic industry concerns.
Shri Bhupathiraju Srinivasa Varma, Minister of State for Steel and Heavy Industries and Steel, provided this information in a written reply in the Rajya Sabha.
Key Entities Referenced
Ministry of Steel: The Indian government ministry responsible for policies related to the steel industry.
Production Linked Incentive PLI Scheme for Specialty Steel: A government scheme to promote the manufacturing of specialty steel within India and reduce imports through capital investments.
Domestically Manufactured Iron Steel Products DMISP Policy: A policy promoting the procurement of Made in India steel for government projects.
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.
Steel Quality Control Order: A regulatory measure banning substandard steel products in the domestic market and imports to ensure quality.
China PR: 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 launched for more effective monitoring.
Shri Bhupathiraju Srinivasa Varma: Minister of State for Steel and Heavy Industries in the Indian government.
Ministry of Steel
STRATEGIES FOR REDUCING DEPENDENCE ON
STEEL IMPORTS
Posted On: 01 AUG 2025 4:54PM 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 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.
iv. 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 upto 31.03.2026.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.
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.
This information was given by the Minister of State for Steel and Heavy Industries and Steel, Shri
Bhupathiraju Srinivasa Varma in a written reply in the Rajya Sabha.
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TPJ/NJ(Release ID: 2151386)