steel import rule

India’s sudden steel import rule is creating panic among MSME manufacturers due to lack of time for BIS certification. This move threatens MSME manufacturing, disrupts raw material imports, and could lead to serious financial losses and supply chain disruption.

India’s small and medium manufacturers are facing panic and confusion after a sudden steel import rule change. The Ministry of Steel, on June 14, announced a new regulation that now requires even raw materials used to make steel abroad—like slabs and hot-rolled coils—to meet BIS (Bureau of Indian Standards) norms. Any shipment having a bill of lading dated June 16 or later is subject to this order.

The rule was enforced without giving industries even a single working day to respond. Even worse is the fact that many MSMEs have already paid for contracts or commodities that are already in route. These items could be refused at Indian ports because they don’t fit the new BIS rules.

For small manufacturers, especially those who rely on imports to produce cold-rolled coils, this sudden move threatens supply chain disruptions, plant shutdowns, and major financial losses. The BIS certification process for foreign suppliers can take six to nine months, according to the Global Trade Research Initiative (GTRI), making rapid compliance all but impossible.

What’s angered many even more is that this order came with no consultation or transition period. Just hours after the new rule was announced, a major domestic steel producer reportedly hiked prices, raising questions about the timing and intent behind the decision.

For India’s MSME sector, which forms the backbone of the manufacturing ecosystem, this policy shift could result in delays, penalties, and lost business opportunities unless the government intervenes quickly with a solution or grace period.