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India tightens steel procurement policy to support local manufacturing

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India has tightened its steel SA553 Type II steel procurement rules for government projects and officially implemented the revised "Domestic Steel Product Policy (2025)" to cope with the impact of imported resources. The policy is valid for five years and may be extended at the discretion of the Ministry of Steel.

According to the revised new policy, all government departments and their agencies are not allowed to conduct global bidding for steel product procurement and must prioritize locally manufactured products, unless approved and the value of related capital goods does not exceed 2 billion rupees. The new policy will also apply to contracts for the purchase of steel products with a total value exceeding 500000 rupees.

The new policy strengthens the SA553 Type II steel protection of local industries in overseas bidding activities: if Indian suppliers are restricted from participating in foreign project bidding, the Indian government can take reciprocal actions.

In addition, the new policy also includes exemption clauses. For special steel grades that have not yet achieved industrial production in India, or categories where local SA553 Type II steel production capacity cannot meet the project's demand level, buyers are allowed to apply for import exemptions.

  • Source: Abstract
  • Editor: Shirley

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