The Indian government has extended the relaxation on stainless steel imports, allowing the sale of non-BIS-compliant (non-Bureau of Indian Standards) steel products until December 31, 2025. The decision, aimed at easing raw material shortages, has received mixed reactions — welcomed by import-dependent industries but opposed by domestic manufacturers concerned about long-term implications.
Import Relief Amid Supply Constraints
The Ministry of Steel stated that the extension was necessary due to limited domestic availability of specific stainless steel grades. Several importers had already made advance payments for consignments, and earlier restrictions could have disrupted production cycles and supply chains.
The move offers temporary relief for industries reliant on imported inputs, ensuring continued operations. However, it also allows foreign mills to use non-BIS-compliant materials for exports to India, while domestic producers must adhere to strict BIS standards — a disparity that manufacturers say creates an uneven playing field.
Domestic Industry Raises Concerns
Indian stainless steel manufacturers have criticised the extension, warning it could lead to market imbalance and reduced investment confidence. Industry representatives argue that repeated relaxations discourage domestic capacity expansion and allow low-grade imports to flood the market.
One manufacturer noted, “The government should maintain policy consistency. Continuous exemptions make it difficult for local producers to recover their investments.”
Manufacturers also cautioned that imports arriving before the December deadline could sustain supply into mid-2026, prolonging pressure on domestic producers and impacting profitability.
Industry Body Calls for Stronger Quality Controls
The Indian Stainless Steel Development Association (ISSDA) has urged the government to strengthen import quality norms. ISSDA President Rajamani Krishnamurti stated, “Imports should be permitted only when the required products are unavailable within the country.”
The association advocates for stricter oversight to prevent Chinese dumping and the entry of low-quality steel, aiming to protect domestic manufacturers and maintain fair competition in the Indian market.
Summary:
The government’s extension of the stainless steel import relaxation until December 31, 2025 aims to mitigate supply shortages but has drawn criticism from domestic producers. While it offers short-term relief to import-dependent industries, concerns remain about market imbalance, reduced investments, and the need for stronger quality control measures.
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