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
Infrastructure Transport

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Next Story
Infrastructure Urban

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

Next Story
Infrastructure Urban

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->