PTI reports that the Indian Steel Ministry has launched a comprehensive investigation into the growing concerns over substandard steel imports flooding the domestic market. Steel Minister H D Kumaraswamy announced the initiative during FICCI's Conference on Electric Vehicles in New Delhi, responding to mounting pressure from industry stakeholders who have raised alarms about the quality and pricing of imported steel products.
The domestic steel industry, which contributes 2% to India's GDP, has been grappling with an influx of cheaper imports that often fail to meet national quality standards. Major steel producers have reported a 15% decline in market share over the past year, primarily attributed to the surge in imports from neighboring countries. The ministry's data indicates that steel imports have increased by 25% year-over-year, with 45% of these imports falling below Indian quality benchmarks.
The government's investigation encompasses multiple aspects of the steel trade, including quality control measures, pricing mechanisms, and import verification procedures. The Bureau of Indian Standards (BIS) has been tasked with reviewing current quality parameters and suggesting improvements to the existing certification process. This initiative aims to ensure that all steel products in the Indian market, whether imported or domestically produced, meet stringent quality requirements.
Industry leaders have welcomed the government's intervention, highlighting the critical nature of maintaining high-quality standards in steel production. The Indian Steel Association reports that substandard steel products pose significant risks to infrastructure projects and could potentially impact the safety of construction projects. The association estimates that poor-quality steel costs the industry approximately 8,000 crore rupees annually in terms of repairs and replacements.
The ministry is also examining potential policy measures to protect domestic manufacturers while ensuring fair competition. These measures include strengthening border inspection protocols, implementing stricter quality certification requirements, and establishing a comprehensive tracking system for imported steel products. The government plans to increase the number of testing facilities at major ports from 12 to 30 within the next fiscal year.
Trade experts have pointed out that the challenge lies in balancing consumer interests with industry protection. The current market dynamics show that imported steel products are often 20% cheaper than domestic alternatives, making them attractive to end-users despite quality concerns. The ministry is considering implementing a price monitoring mechanism to ensure that quality improvements don't lead to unreasonable price increases for consumers.
The Steel Ministry has announced plans to form a joint task force comprising industry representatives, quality control experts, and government officials to oversee the implementation of new regulations. This task force will be responsible for developing a roadmap for quality improvement, monitoring import patterns, and recommending policy adjustments as needed. The initiative is expected to be fully operational within the next six months, with preliminary measures being implemented immediately.
The ministry's actions reflect a broader government strategy to strengthen India's manufacturing sector while ensuring product quality and safety standards meet international benchmarks. The steel industry, with its annual production capacity of 150 metric tons, plays a crucial role in this vision, particularly as the country aims to become a global manufacturing hub.
