Steel is a de-regulated sector in India, with the government acting primarily as a facilitator by creating a policy environment that supports the industry’s growth. Several key initiatives have been launched to strengthen domestic manufacturing, lower input costs, improve product quality, and enhance market monitoring.
One major initiative is the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy, which promotes the use of ‘Made in India’ steel in government procurement projects. In addition, the Production Linked Incentive (PLI) Scheme for Specialty Steel aims to boost domestic production through capital investments and reduce reliance on imports.
The Union Budget’s focus on infrastructure development has significantly driven steel demand. To further support the sector, adjustments have been made to Basic Customs Duty on materials such as ferro nickel and ferrous scrap, thereby helping to reduce input costs.
The Steel Import Monitoring System (SIMS) has been upgraded to provide more detailed import data, assisting industry stakeholders with planning and strategy. Furthermore, Steel Quality Control Orders have been introduced to prevent the circulation of substandard steel in both domestic and imported markets, ensuring availability of high-quality, reliable products.
In terms of sustainability, the government is promoting circular economy practices. The Steel Scrap Recycling Policy (2019) sets a collaborative framework among ministries to improve the recycling of ferrous scrap. The Vehicle Scrapping Policy, led by the Ministry of Road Transport and Highways (MoRTH), supports the phase-out of old and polluting vehicles. It defines rules for the Registration and Operation of Vehicle Scrapping Facilities (RVSFs), ensuring safe depollution and efficient recovery of materials from End-of-Life Vehicles (ELVs).
Additionally, the Environment Protection (End-of-Life Vehicles) Rules, 2025, issued by the Ministry of Environment, establish Extended Producer Responsibility (EPR) norms. These rules mandate scrapping targets for manufacturers based on the types of vehicles and the materials recovered.
The government has also notified the Recycling of Ships Act, 2019, under the Ministry of Shipping, Ports and Waterways, to encourage safe and environmentally responsible ship recycling.
These details were shared by Shri Bhupathiraju Srinivasa Varma, Minister of State for Steel and Heavy Industries, in a written reply to the Lok Sabha.