India Steel Import Regulations: Strengthening Quality Standards to Protect Local Industry from Low-Cost Chinese Steel

India Steel Import Regulations

India strengthens steel import control to prevent China’s low-priced steel from impacting the local market

India is enhancing its steel import regulations through expanded Bureau of Indian Standards (BIS) requirements to protect its domestic industry from an influx of low-cost steel, particularly from China. The initiative aims to ensure that only high-quality steel enters the market by closing existing loopholes and mandating compliance for nearly all imported steel products.

With BIS standards expected to be implemented within six months, industry experts support these measures as crucial for maintaining quality and fair competition. The changes align with India’s Atmanirbhar Bharat vision, promoting self-reliance and reducing dependence on imports while also addressing concerns about dumping practices that threaten local manufacturers.

Key Concepts

• India is expanding Bureau of Indian Standards (BIS) regulations to enhance the quality of imported steel.
• The initiative aims to protect domestic steel producers from cheap imports, particularly from China.
• Current BIS standards cover only 1,375 steel grades, which is considered insufficient for effective quality control.
• Industry experts support the expanded BIS standards as a means to promote fair competition and maintain quality.
• The expiration of BIS certifications for Chinese steel mills may disrupt their access to the Indian market.
• The Indian government is conducting an anti-dumping investigation into the impact of Chinese steel imports.
• The new BIS regulations are expected to favor local manufacturers by reducing foreign competition.
• Concerns have been raised about potential challenges under World Trade Organization (WTO) rules regarding the new regulations.
• Major Indian steel producers view the expanded BIS standards as essential for protecting market share.
• The initiative aligns with India’s Atmanirbhar Bharat vision, promoting self-reliance in critical sectors like steel.

India is strengthening its steel import regulations to protect its industry from cheap steel from China, with the core measure being to expand the scope of certification by the Bureau of Indian Standards (BIS) to apply it to almost all imported steel products to plug loopholes where low-quality steel enters the market through small grade differences. This move is intended to create a fair competitive environment for local producers while preventing the dumping of low-quality steel.

Expanding BIS standards: Closing loopholes for low-quality imports

The Indian government’s move focuses on strengthening quality control of imported steel products from China. Although the current BIS standards cover 1,375 steel grades, this coverage is not enough to prevent low-quality steel with small grade differences from entering the market.

A senior steel ministry official, requesting anonymity, explained the government’s intention: “We want to cover almost all steel grades, including those with minor adjustments so that there is no loophole for low-quality steel imports from China.” He noted that the new BIS standards are likely to be implemented within six months and the change is expected to have a lasting impact on the steel import pattern.

India’s steel imports grew by 41.3% in the first half of fiscal year 2024-2025 (April-September), with China accounting for 31% of this growth. By expanding the BIS framework, India aims to reduce this inflow through stringent requirements for imported steel products and ensure that only high-quality steel enters the Indian market.

Quality and compliance become industry priorities

Industry experts welcomed the expanded BIS standards as an important step to maintain quality and fair competition in the Indian steel market. In an interview with VOA, Dr. Aruna Sharma, a former senior official in the Indian Steel Ministry, stressed the importance of preventing low-quality steel from affecting domestic producers. She said, “India cannot allow low-quality imports for the short-term needs of a particular industry.” She further added, “The expanded BIS standards will ensure compliance and protect our industry from dumping practices.”

ACR Das, a well-known Indian steel expert, expressed the same view in an interview with VOA. He said: “China is dumping all grades of steel products, including electrical steel, into India at incredibly low prices, which has a huge impact on Indian producers.” Das suggested that the BIS compulsory certification mark program is the core mechanism to prevent low-quality imports. He also pointed out: “BIS certification efforts are to provide users with high-quality products and give users the right to seek legal remedies when they receive low-quality products.”

As the BIS certifications of several Chinese steel mills are about to expire, Das pointed out that it will be difficult for these steel mills to continue to enter the Indian market if they are not renewed.

Countering China’s dominance of low-priced steel

China’s steel exports often hit global markets at prices below the cost of production, posing a major challenge for Indian manufacturers. The continued rise in steel imports, especially from China, has raised concerns about “dumping” – the practice of selling products at unreasonably low prices, disrupting the local industry.

China’s low-priced steel has made it difficult for Indian producers to compete, especially as Chinese steelmakers face a domestic supply glut and slow local demand. The government’s expansion of the BIS criteria is also in line with an ongoing anti-dumping investigation that will assess the damage caused to India’s domestic industry.

Dr AS Firoz, strategic advisor for industrial and economic affairs at India’s steel ministry, noted: “The investigation will reveal the impact on the Indian industry.” He stressed that the expiration of BIS certification for several Chinese steel mills could change India’s market dynamics and bring new opportunities for domestic producers.

Regulatory impact on the electrical steel and power industries

The expanded BIS standards are also expected to have a specific impact on imports of electrical steel, a key material for India’s power sector. Cold-rolled grain-oriented silicon steel (CRGO) sheets have been dependent on imports due to limited domestic production. However, Das pointed out that while CRGO sheets are in short supply locally, other types of cold-rolled non-oriented silicon steel (CRNO) sheets are produced in sufficient quantities domestically.

With Chinese producers’ BIS certification set to expire, electrical steel imports could see a temporary disruption as Chinese mills seek recertification. According to Das, the market could see supply-demand imbalances as it adjusts, and prices could rise. However, the new rules could ultimately benefit local producers who are ready to increase production in response to reduced foreign competition.

Balancing domestic interests with global trade regulations

India’s decision to impose stricter import standards is in line with its Atmanirbhar Bharat vision, which aims to boost local manufacturing capabilities in key sectors, including the steel industry. By requiring all imported steel to meet the same stringent standards as domestically produced steel, India aims to create a more competitive environment for local industry.

However, experts like Das have raised concerns about whether India’s regulatory approach could face challenges under World Trade Organization (WTO) rules. “If there is no valid reason for the expiration of a license, such as a quality complaint, it could be disputed at the WTO,” he explained. Nonetheless, he believes that if entry into India becomes more difficult, Chinese producers may explore other markets.

Industry response: protecting local market share

While major domestic steel producers such as JSW Steel and Tata Steel support the expanded BIS standards, some importers and foreign producers are concerned about the impact it could have on the supply chain and consumer prices. They argue that strict regulations could increase costs and reduce the supply of steel grades that are not yet produced in India. However, Indian steelmakers believe that the expanded standards are essential to protect their market share and support industry growth.

Dr. Sharma emphasized this point: “The expanded BIS standards will allow domestic manufacturers to compete more effectively on price while ensuring strict quality control.” She pointed out that this move supports the development of local industry by eliminating the price advantage of low-quality imports and promoting higher quality standards in the supply chain.

Towards a resilient steel industry

India’s expanded BIS standards represent a strategic effort to protect its steel industry from low-cost imports while encouraging quality and compliance in the market. By setting higher standards for imported steel, India aims to support local manufacturers and ensure that only high-quality steel enters the market. With the regulations expected to be finalized within six months, India’s steel trade is about to see major changes that could have a positive impact on local production and quality standards.

Promoting self-reliance in sectors such as steel is part of India’s broader goal of reducing its reliance on imports, particularly from China. As BIS certification becomes more comprehensive and stringent, India may soon witness the emergence of a more resilient and self-sufficient steel industry, in line with the country’s infrastructure and industrial growth goals.