In a significant policy shift, India has tightened steel procurement rules to favor local manufacturing. Under the new “Domestically Manufactured Iron And Steel Products Policy 2025,” all government entities must prioritize domestically produced iron and steel products over imports. This measure comes as domestic mills struggle to compete with the influx of cheaper imports from China, South Korea, and Japan, which reached record levels last financial year.
The policy, valid for five years with potential extensions, explicitly prohibits bid documents from demanding foreign certifications or imposing technical specifications that disadvantage local suppliers. Additionally, foreign governments or entities blocking Indian mills from their tenders will be barred from participating in Indian government contracts—unless specific product exceptions apply.
These steps complement recent recommendations by the Directorate General of Trade Remedies, which suggested a temporary 12% tax on certain steel imports to mitigate the “serious injury” inflicted on the domestic industry. With these measures, India aims to strengthen its local steel market and support its mills in the face of global pricing pressures.
