The Indian government’s recent mandate necessitates that steel imports lacking Bureau of Indian Standards (BIS) clearance obtain approval from the steel ministry, aiming to curb the influx of substandard goods. Consequently, this move is expected to curtail the surge in steel product imports observed in recent months.
The decision aligns with the BIS quality control order for various steel products, requiring importers to seek prior quality approval from the steel ministry for consignments intended for domestic sale.
As a result of this policy change, industry experts anticipate a potential reduction in steel imports, which reached 7.68 million tonnes between April and August, marking a substantial 59.45% increase from the previous year’s 4.82 million tonnes. Under the existing system, BIS certification is granted to eligible foreign steel mills. Following this, government officials verify goods at Indian ports before their introduction into the market.
The recent directive grants authority to a technical committee, operating under the steel ministry, to sanction the entry of any non-BIS compliant steel imports into India. Notably, South Korea emerged as the foremost exporter, shipping over a million tonnes during April-August, with the total import value for the period rising to 5,856.35 crore from 4,830.42 crore in the corresponding period last year.