A new notification by the Ministry of Steel on quality certifications for steel inputs has given industry players less than one business day to comply with it and stands to create huge disruptions and cost escalations for Micro, Small, and Medium Enterprises (MSMEs) in the sector, according to steel industry participants and trade experts.
The notification - released on June 13 - extended the Ministry of Steel's Quality Control Order (QCO) on steel and steel products to the inputs that go into the making of these products too. This means that the input and raw materials used to make steel and steel products, including imports, will also have to conform to the relevant standards issued by Bureau of Indian Standards.
According to Panckaj N. Umrania, Executive Director at KND Steel, this requirement will not only increase the compliance burden, but will also increase costs for steel importers.
What will happen in the industry is that a lot of manufacturers will struggle to import now, Mr. Umrania told The Hindu. So, their production will be hampered, delays will occur. So, a lot of disruption, I personally see, is going to happen.
Effectively, Indian importers were not given even one working day - between the order's date being June 13, 2025 (Friday) and announcement date (over mail and SIMS portal) on June 16 (Monday) - to ensure full compliance, Ajay Srivastava, former Director General of Foreign Trade and founder of the Global Trade Research Initiative (GTRI) said.
According to Mr. Umrania, even a month's notice would not have been enough time, since processes related to the steel industry take a long time.
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