India’s steel industry is currently facing a significant crisis with over 10,000 steel user units across the country with grappling with operational and financial difficulties due to prolonged port delays, burdensome regulatory requirements and the slow pace of clearance procedures at customs, according to a report by research firm Global Trade Research Initiative (GTRI) issued on Monday, November 25.
According to GTRI, these delays and complications are seriously affecting production timelines and export capacities, threatening the competitiveness of India's steel sector in the global market.
The report pointed out that the issues faced by the steel user industry stem from multiple factors, with port inefficiencies being the most critical. The prolonged time taken for shipments to clear customs and reach factories is leading to disruptions in the supply chain.
These delays have been exacerbated by unclear and cumbersome regulatory processes, which, while aimed at protecting domestic steel manufacturers, have instead created a difficult environment for industries dependent on imported steel.
The Indian government’s policies, which are designed to protect domestic steelmakers, have unintentionally penalized industries that rely on imported steel for their manufacturing processes. Policies such as import restrictions, mandatory quality checks, and the Steel Import Monitoring System (SIMS) are meant to protect local producers, but have added complexity and delays to the supply chain.
GTRI stressed that these measures are creating confusion and inflating costs for businesses, with the added burden of complying with various regulatory standards like the Bureau of Indian Standards (BIS) certifications.
It said that, if import restrictions are deemed necessary, they should be implemented through clear, well-defined policies rather than the complex procedural roadblocks that currently exist. This would allow industries that depend on imported steel to function efficiently without facing the additional burden of red tape.