New Delhi
Over 10,000 steel-using industries in India are facing severe challenges due to port delays and complex regulatory requirements, Global Trade Research Initiative (GTRI) said on Monday. These issues are disrupting production and exports, prompting calls for reforms in the import process.
The think tank highlighted that policies meant to protect domestic steelmakers, such as import restrictions and quality control measures, have inadvertently burdened industries reliant on imported steel. Ajay Srivastava, founder of GTRI, stated, “Port delays and unclear regulations are choking India’s steel user industries, causing financial strain and operational difficulties.”
The government’s Steel Import Monitoring System (SIMS) and Quality Control Orders (QCOs) were introduced to oversee imports and ensure quality. However, implementation flaws have created confusion and delays. For instance, customs often demand No Objection Certificates (NOCs) from the Bureau of Indian Standards (BIS) for products not covered under QCOs, slowing clearance processes. Malfunctions in the SIMS platform add to these challenges, further hampering timely approvals. These procedural roadblocks have increased costs and uncertainty for steel-dependent industries.
GTRI emphasized that Free Trade Agreements (FTAs) also require better oversight, as some provisions allow steel to be imported at concessional rates, raising competition concerns for domestic producers. To address these issues, the think tank recommends streamlining import procedures, digitizing systems, and ensuring clear guidelines. It also called for QCOs to apply only to steel products sufficiently available domestically and for improvements to SIMS.
