India Tightens Steel Procurement Policy: Favours Local Production, Adds Reciprocity Clause

New Delhi: The Indian government has introduced stricter regulations for steel procurement, emphasizing local manufacturing and adding a reciprocity clause to ensure fair competition. The move aims to strengthen domestic steel production and reduce reliance on imports.

Boosting Local Steel Manufacturing

The revised policy requires government projects to prioritize domestically produced steel, supporting Indian manufacturers. This decision is expected to enhance production capacity, create jobs, and stimulate economic growth within the sector.

Reciprocity Clause for Fair Trade

The newly added reciprocity clause ensures that foreign suppliers from countries restricting Indian exports will face similar trade barriers. This step aligns with India's self-reliance goals, promoting fair competition in international markets.

Impact on the Steel Industry

Experts believe this policy shift will strengthen India's steel sector by encouraging local investment and reducing dependency on global markets. The move is also in line with the "Atmanirbhar Bharat" initiative, focusing on domestic industry growth.

Global Reactions

International trade partners are closely monitoring the policy changes, as they may impact steel exports to India. Analysts suggest that foreign steel suppliers may have to reassess their strategies in response to the new rules.

India’s revised steel procurement policy marks a significant step in bolstering local industry and ensuring fair trade practices. With an emphasis on domestic production and a strict reciprocity clause, the move is set to reshape the country's steel trade landscape.