India prioritizes local steel for government projects

The country has introduced a «melted and poured» rule for government-funded projects

The Indian government has revised its local steel policy for 2025 to ensure that locally produced steel is used in government projects. This is reported by The Economic Times.

The revised rule stipulates that all government-funded projects must use Indian-made steel that meets the “smelted and cast” requirements, which ensures that steel is smelted from basic raw materials in the country.

Officials say the move is aimed at tightening regulations and favoring full domestic production over imported value-added steel.

The previous policy stipulated minimum domestic value-added requirements for steel to be purchased, i.e., the ability to import steel and transform it into finished products, as well as participate in public procurement.

According to the Indian media, this policy will be in effect for the next five years with the possibility of extension at the discretion of the Ministry of Steel. It applies to the procurement of a wide range of products, including flat products, bars, wires, pipes and railway components, all of which must be produced using the “melt and pour” process in India, including in special economic zones. The new rules cover all government ministries, departments and agencies, as well as projects financed by them, with a set threshold value.

As GMK Center reported earlier, India recently imposed a temporary 12% safeguard duty on certain steel imports. It will be in effect for 200 days (from April 21, 2025), unless it is canceled, replaced or amended earlier. These measures are aimed at protecting the country’s steelmakers from the negative impact of a sharp increase in imports and should ensure fair competition in the market.