Lok Sabha Question No. 3786 (UNSTARRED), answered on 2025-08-12
Subject: Significant Surge in Steel Imports
Ministry: STEEL
Asked by: Ms. S Jothimani

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO. 3786 FOR ANSWER ON 12.08.2025

## SIGNIFICANT SURGE IN STEEL IMPORTS

3786.  MS. S JOTHIMANI:

Will the Minister of STEEL be pleased to state:

- (a) the reasons behind our country transitioning from a net exporter to a net importer of finished steel and the key factors contributing to this reversal;
- (b) whether there has been a sudden and significant surge in steel imports in recent months and if so, the details thereof including import trends, country-wise;
- (c) the measures being taken by the Government to support domestic steel producers, particularly in light of increased import competition;
- (d) whether the recent clarification on the Quality Control Order (QCO) issued by the Ministry of Steel, mandating BIS compliance for intermediate goods, has increased production and import costs for MSME players in the steel sector; and
- (e)  if  so,  the  steps  being  taken  to  safeguard  MSMEs  from  potential  losses  or shutdowns, including any transitional support, exemptions, or relief mechanisms?

## ANSWER

(SHRI H.D. KUMARASWAMY)

(a)to(e):    Steel is a deregulated sector and the Government acts as a facilitator by creating a conducive policy environment for the development of steel sector in the country. The decisions regarding import and export are taken by the steel companies based on techno-commercial considerations and market dynamics.

The import of steel had increased from 6.022 MT in 2022-23 to 9.55 MT in 2024-25. The steel imports in first quarter of FY 2025-26 are 1.38 MT.

Government has taken following steps to facilitate the reduction of Steel imports and to improve the competitiveness of domestic steel manufacturers including MSMEs to reduce dependency on imports: -

- i. Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for promoting 'Made in India' steel for Government procurement.

- ii. Launch  of  Production  Linked  Incentive  (PLI)  Scheme  for  Specialty  Steel  to promote the manufacturing of 'Specialty Steel' within the country and reduce imports by attracting capital investments.
- iii. Introduction  of  Steel  Quality  Control  Order  thereby  banning  sub-standard/ defective steel products in domestic market as well as imports to ensure the availability of quality steel to the industry, users and public at large.
- iv. In  the  Union  Budget  2024-25,  following  measures  were  taken  to  support domestic manufacturers and boost domestic steel manufacturing:-
- a.  Basic Customs Duty (BCD) has been reduced from 2.5% to Nil on FerroNickel and Molybdenum ores and concentrates which are raw materials for steel industry.
- b.  BCD exemption on Ferrous Scrap has been continued upto 31.03.2026.
- c.  The exemption on specified raw material for manufacture of Cold Rolled Grain  Oriented  (CRGO)  steel  has  been  continued  up  to 31.3.2026. Further, the exemption has also been extended to such specified raw materials for manufacture of CRGO Steel falling under tariff item 7226 11.00.
- v. Anti  Dumping  Duty  (ADD)  measures  pertaining  to  some  steel  products  like seamless tubes, pipes and hollow profiles of iron, alloy, or non-alloy steel (other than cast iron and stainless steel) (from China PR), electro-galvanized steel (from Korea RP, Japan, Singapore), stainless-steel seamless tubes and pipes (from China PR), welded stainless steel pipes and tubes (from Vietnam and Thailand) are in place currently.
- vi. Counter-Vailing Duty (CVD) is in place for Welded Stainless Steel Pipes and Tubes from China and Vietnam.
- vii. Government  has  imposed  a  provisional  safeguard  duty  at  the  rate  of  12% (twelve percent) ad valorem for 200 days on imports of certain Non-Alloy and Alloy Steel Flat Products.

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