Port delays and red tape strain India’s 10,000 steel user units
Steel

Port delays and red tape strain India’s 10,000 steel user units

Over 10,000 steel user units in India are grappling with operational and financial difficulties due to significant port delays and complicated regulatory hurdles, according to the Global Trade Research Initiative (GTRI). These challenges have started to take a toll on the production and export capabilities of several industries reliant on imported steel. GTRI has called on the Indian government to streamline import processes and digitize systems to provide much-needed relief to the sector.

The think tank highlighted that policies aimed at protecting domestic steelmakers, such as import restrictions and quality control measures, have unintentionally hurt industries that rely on imported steel for manufacturing. These regulations, while beneficial to local producers, have caused severe delays in shipments and increased costs for companies using steel in their production processes.

In a statement, GTRI Founder Ajay Srivastava emphasized that over 10,000 steel user units are currently facing severe financial strains, threatening their ability to remain operational and continue exporting goods. These industries, which play a critical role in India’s manufacturing sector, are finding it increasingly difficult to maintain supply chains due to the excessive scrutiny of imports.

One of the key factors contributing to these delays is the government’s Steel Import Monitoring System (SIMS), which requires detailed declarations of steel imports before they arrive in the country. However, the process has led to confusion, as customs officials have extended these requirements beyond the steel products subject to quality control orders (QCOs), demanding unnecessary No Objection Certificates (NOCs) from the Bureau of Indian Standards (BIS) for items that do not fall under these regulations. The delay in obtaining NOCs from BIS has led to longer clearance times at ports, further straining the steel user units.

Additionally, the Steel Ministry’s SIMS system, designed to monitor steel imports, has often malfunctioned, causing delays and complications in the clearance process. GTRI has urged the government to implement clearer, more efficient procedures for monitoring imports, as well as focusing on digitizing the clearance system to reduce bottlenecks.

The think tank also pointed out that Free Trade Agreements (FTAs) need to be carefully reviewed. Some FTAs have allowed foreign producers to re-import steel at concessional rates, raising concerns about the growing competition faced by domestic steelmakers. GTRI stressed that if import restrictions are necessary, they should be enforced through well-defined policies rather than through procedural roadblocks that disrupt the smooth functioning of the sector.

In conclusion, GTRI called for reforms in the steel import process, suggesting that the government must focus on developing a framework that supports both domestic steelmakers and industries dependent on steel imports. Without these improvements, the think tank warned, India’s broader manufacturing sector and its global manufacturing aspirations could face significant challenges.

Over 10,000 steel user units in India are grappling with operational and financial difficulties due to significant port delays and complicated regulatory hurdles, according to the Global Trade Research Initiative (GTRI). These challenges have started to take a toll on the production and export capabilities of several industries reliant on imported steel. GTRI has called on the Indian government to streamline import processes and digitize systems to provide much-needed relief to the sector. The think tank highlighted that policies aimed at protecting domestic steelmakers, such as import restrictions and quality control measures, have unintentionally hurt industries that rely on imported steel for manufacturing. These regulations, while beneficial to local producers, have caused severe delays in shipments and increased costs for companies using steel in their production processes. In a statement, GTRI Founder Ajay Srivastava emphasized that over 10,000 steel user units are currently facing severe financial strains, threatening their ability to remain operational and continue exporting goods. These industries, which play a critical role in India’s manufacturing sector, are finding it increasingly difficult to maintain supply chains due to the excessive scrutiny of imports. One of the key factors contributing to these delays is the government’s Steel Import Monitoring System (SIMS), which requires detailed declarations of steel imports before they arrive in the country. However, the process has led to confusion, as customs officials have extended these requirements beyond the steel products subject to quality control orders (QCOs), demanding unnecessary No Objection Certificates (NOCs) from the Bureau of Indian Standards (BIS) for items that do not fall under these regulations. The delay in obtaining NOCs from BIS has led to longer clearance times at ports, further straining the steel user units. Additionally, the Steel Ministry’s SIMS system, designed to monitor steel imports, has often malfunctioned, causing delays and complications in the clearance process. GTRI has urged the government to implement clearer, more efficient procedures for monitoring imports, as well as focusing on digitizing the clearance system to reduce bottlenecks. The think tank also pointed out that Free Trade Agreements (FTAs) need to be carefully reviewed. Some FTAs have allowed foreign producers to re-import steel at concessional rates, raising concerns about the growing competition faced by domestic steelmakers. GTRI stressed that if import restrictions are necessary, they should be enforced through well-defined policies rather than through procedural roadblocks that disrupt the smooth functioning of the sector. In conclusion, GTRI called for reforms in the steel import process, suggesting that the government must focus on developing a framework that supports both domestic steelmakers and industries dependent on steel imports. Without these improvements, the think tank warned, India’s broader manufacturing sector and its global manufacturing aspirations could face significant challenges.

Next Story
Real Estate

Thermocool Home Appliances Invests Rs 300 million in New Ghaziabad Plant

Thermocool Home Appliances, a leading UP-based home and kitchen appliances brand, has inaugurated a new manufacturing facility in Ghaziabad, reinforcing its growth, innovation, and sustainability commitments.Spanning 25,000 square meters, the plant features advanced automation, energy-efficient systems, and employee welfare facilities. With an initial production capacity of 1,800-2,200 units/day, the company plans to scale up to 3,000-4,000 units/day within six months and expand the facility by 50 percent over the next two years.The Rs 300 million investment will cater to rising demand across ..

Next Story
Building Material

Parallel debuts fluted glass collection, redefining luxury interiors

Parallel has launched an exquisite collection of tinted, extra-clear, and designer fluted glass, introducing a new dimension to contemporary interiors.Fluted glass, known for its vertical striations, diffuses light while sculpting silhouettes with a refined aesthetic. Parallel’s range includes smoky tinted variants, pristine extra-clear options, and metallic-infused designs, ideal for partitions, doors, and wall treatments that balance exclusivity with openness.Emphasising sensory design, the collection enhances spaces by creating dynamic light interactions. Crafted for luxury residences, ho..

Next Story
Building Material

Nivasa unveils luxury lighting collection blending artistry and innovation

Nivasa, a leader in luxury furniture design, has launched an exquisite lighting collection inspired by nature, combining sculptural aesthetics with masterful craftsmanship.Crafted from premium 304-grade stainless steel, each piece showcases a refined interplay of organic and sleek forms, offering a range of finishes for bespoke customization. Designed for grand foyers, intimate spaces, and sophisticated interiors, the collection merges contemporary finesse with global design standards.Collection highlights include:Circular Drummer’s Chandelier – A geometric yet fluid design in a light gold..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?