In a significant move to boost India’s steel industry and ease raw material bottlenecks, the Ministry of Steel has exempted 202 foreign steel licences from the mandatory Bureau of Indian Standards (BIS) quality certification under the Steel Import Monitoring System (SIMS).
The exemption, announced on 8 August 2025, aims to ensure a steady supply of high-grade steel for India’s integrated steel plants (ISPs)—especially for specialised grades not manufactured domestically.
Key Highlights of the BIS Certification Waiver
- Total Licences Exempted: 202 foreign steel licences
- Countries Covered: 17 nations, including Japan, South Korea, Germany, Italy, France, Russia, and the US
- Top Suppliers:
- Japan – Over 80 licences
- South Korea – More than 50 licences
- Purpose: Ensure uninterrupted availability of specialised steel grades for automotive, engineering, and industrial applications
Why the Waiver Matters for India’s Steel Sector
The BIS certification requirement was originally introduced to curb substandard steel imports and protect domestic manufacturers. However, industry stakeholders have raised concerns that this regulation often delays the import of steel grades that are not produced locally, causing supply shortages for major infrastructure and industrial projects.
By temporarily waiving certification requirements for select suppliers, the government is striking a balance—maintaining quality standards while ensuring that domestic steelmakers have access to the materials they need without delays.
Beneficiaries of the Decision
The move will particularly benefit major global steel producers such as:
- Nippon Steel (Japan)
- JFE Steel (Japan)
- POSCO (South Korea)
- Hyundai Steel (South Korea)
These companies supply specialised, high-grade steel that is critical for India’s automotive manufacturing, engineering projects, and industrial development. The exemption could also help control input costs for ISPs amid volatile global steel prices.
Continuous Review and Future Scope
According to the ministry, this is an ongoing exercise—more licences may be exempted as and when requests are received. The flexibility ensures that supply chains remain responsive to market needs while supporting India’s ‘Make in India’ manufacturing push and infrastructure growth targets.
Upcoming Open House for Industry Stakeholders
In addition to the waiver, the steel ministry has scheduled an ‘Open House’ on 19 August 2025 to address industry concerns regarding:
- Steel Import Monitoring System (SIMS)
- Quality Control Orders (QCOs)
- No Objection Certificates (NOCs) for steel imports
This forum will allow companies and industry associations to directly engage with ministry officials and present challenges related to steel import regulations.
Conclusion
The BIS certification exemption for 202 foreign steel licences is a strategic policy move that not only supports domestic steel producers but also strengthens India’s position in the global steel supply chain. By ensuring timely access to high-quality steel grades, the government is paving the way for accelerated manufacturing growth, infrastructure development, and economic competitiveness.
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