India has tightened its steel procurement rules for government-funded projects, requiring all steel used to be locally produced under the “melted and poured” process. The revised policy, effective in 2025, mandates that steel must be smelted from raw materials within the country rather than imported and processed into finished products.
Officials state that the move aims to strengthen domestic production and limit reliance on imported value-added steel. Previously, government procurement allowed steel imports as long as they met minimum domestic value-added requirements.
The policy applies to various steel products, including flat steel, bars, wires, pipes, and railway components, all of which must be produced in India, including in special economic zones. It will remain in effect for five years, with potential extensions at the discretion of the Ministry of Steel.
Additionally, India has imposed a temporary 12% safeguard duty on specific steel imports from 21 April 2025. The measure, set to last 200 days unless amended or revoked, aims to protect domestic producers from a surge in imports and ensure fair competition. The revised procurement rules further reinforce India’s commitment to strengthening its steel industry.
