India’s steel ministry has mandated that raw materials used in imported finished steel products must comply with Indian quality standards, a move expected to curb imports and disrupt supply chains. The order, issued on 13 June, requires semi-finished products like slabs, billets, and ingots to meet Bureau of Indian Standards (BIS) certification, even if the final product is already certified.

Previously, only finished steel needed BIS approval, but the new rule expands compliance to input materials. The policy, effective for shipments with a bill of lading from 16 June, has raised concerns among micro, small, and medium enterprises (MSMEs) and automotive manufacturers reliant on specialty steel imports. Industry experts warn of potential production delays and plant closures, as many MSMEs have already paid for non-compliant shipments.

The automotive sector, which imports high-grade steel from Japan and other countries, may face shortages. A Global Trade Research Initiative report highlights India’s reliance on imports for critical products like cold-rolled grain-oriented steel, with only 12% of domestic demand met locally.

While the rule aligns with India’s "Make in India" initiative, traders warn it could disrupt supply chains and benefit domestic producers. South Korean plate imports may also decline due to non-compliant inputs. The policy follows a provisional safeguard duty imposed in April to curb flat steel imports.