Steel Quality Order Hurts MSMEs, GTRI Claims

New Delhi, Aug 12 (PTI) The steel ministry's order mandating BIS certification for both finished steel products and all raw materials used in them has stalled imports, disrupting thousands of MSMEs in sectors such as auto, think tank GTRI has claimed on Tuesday.

The Global Trade Research Initiative (GTRI) also said that this has led to the cancellation of contracts and has pushed up input costs.

It said on June 13, the ministry ordered that Bureau of Indian Standards (BIS) certification must cover not only finished steel products but also all raw materials used in BIS-certified goods.

"The move halted imports, hitting thousands of MSMEs in auto parts, construction, capital goods, and precision engineering with cancelled contracts and soaring input costs," GTRI Founder Ajay Srivastava said.

He said the Madras High Court initially granted an interim stay, but on July 30, 2025, the Supreme Court vacated that order and sent the case back for a full hearing.


Meanwhile, the Ministry gave the medical device sector a one-year exemption for certain stainless-steel grades, prompting MSMEs (micro, small and medium enterprises) to demand the same relief, he said.

"India uses more stainless steel than it produces. This gap forces industries like construction, auto, manufacturing, and precision engineering to rely on imported stainless steel," he said.

He added that for MSMEs, the fallout has been immediate and severe.

Import consignments are stuck at ports, demurrage charges are mounting, and international buyers are cancelling contracts, he said.

"Sectors most affected include auto-component manufacturing, stainless-steel utensils, precision tubing, and fasteners," Srivastava said, adding that no major steel-producing economy, such as the US, EU, or Japan, requires separate national certification for raw materials when the final product already meets quality standards.