India’s Revised Steel Procurement Policy: A Boost for Local Manufacturers
- ByAdmin --
- 03 Apr 2025 --
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On March 30, 2025, the Indian government revised its steel procurement policy under the Public Procurement (Preference to Make in India) Order, 2017. This change—though technical—carries massive implications for India’s steel industry, foreign suppliers, and public sector projects.
The Shift in Policy
Previously, public procurement of steel allowed for both domestic and international sourcing as long as price and quality matched standards. But the 2025 amendment mandates that government projects must now source steel solely from Indian manufacturers, barring a few exceptions.
In short: If you’re building a bridge, flyover, or metro line funded by the government, your steel better be “Made in India.”
Why the Change?
The Ministry of Steel cited concerns about the “over-dependence on foreign steel”, especially from China and South Korea. The COVID-era supply chain disruptions had made India painfully aware of its vulnerabilities.
This policy is designed to:
• Strengthen domestic manufacturing
• Protect Indian MSMEs in steel production
• Ensure better quality control and traceability
Who Benefits?
• Indian steel giants like SAIL, JSW, and Tata Steel stand to gain immediate procurement preference.
• Smaller domestic manufacturers, often overlooked, will also benefit from niche orders in regional projects.
Industry Reaction
While steel manufacturers welcomed the move, critics argue that:
• It may increase project costs
• Limit competition, possibly impacting innovation
• And could spark retaliatory trade measures from exporters
Legal & Constitutional Perspective
This isn’t just about economics—it’s about public interest under Article 39(b), which empowers the State to direct policy toward controlling material resources to best serve the community.
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