India has updated its Domestically Manufactured Iron & Steel Products Policy for 2025 as of April 1. This change, announced by the Ministry of Steel, is designed to enhance the competitiveness of domestic manufacturers. The new policy emphasizes the preference for locally produced iron and steel products in government procurement, including capital goods used in their manufacturing. However, it does not cover purchases intended for commercial resale or manufacturing goods for sale.
The updated policy applies to all government ministries, departments, and agencies, including projects funded by these entities. It requires that any iron and steel procurement exceeding Rupees 500,000 must prioritize domestic products. Additionally, global tenders will not be allowed for iron and steel product procurements or their capital goods with an estimated value of up to Rupees 2 billion, unless approved by a designated authority from the Department of Expenditure. To ensure adherence to these guidelines, procuring agencies are instructed to follow standard procurement procedures and clearly define qualification criteria in tender documents.
Domestic manufacturers are required to self-certify their local content during bidding, and those bidding on behalf of domestic manufacturers must provide authorization certificates. The policy also prohibits suppliers from countries that limit Indian companies’ access to their government tenders from participating in similar bids in India, promoting a fair competitive environment for local suppliers. Market reactions to the revised policy indicate a generally subdued impact, as the timing coincides with robust market conditions. Analysts suggest that the policy serves primarily as a declaration of the government’s commitment to supporting domestic production rather than causing any significant market shifts.
The Ministry of Steel has also indicated its intention to grant waivers for procurements where specific steel grades are not available domestically, provided there is sufficient proof of unavailability. The policy will be in effect for the next five years and may be extended if deemed necessary.