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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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

AGM Vijaylaxmi launches Sixty3 W.E. Bizpark

AGM Vijaylaxmi Group has launched Sixty3 W.E. Bizpark, a mixed-use commercial development in Goregaon East, Mumbai. The project includes contemporary office spaces and a high-street retail component designed to support businesses, retailers and professionals.Located along the Western Express Highway, Sixty3 W.E. Bizpark is planned as a G+25-storey commercial tower. It offers office spaces ranging from 545 sq ft to 3,200 sq ft, with a 3.60 metre floor-to-floor height aimed at improving spatial comfort, natural light and operational efficiency.The project features a high-street retail boulevard ..

Next Story
Real Estate

Manglam Group to Develop Sheraton Hotel in Jaipur

Manglam Group has signed an agreement with Marriott International to develop a Sheraton hotel on the Jaipur–Ajmer Highway in Jaipur. The project will feature 220 keys and is being developed with an investment of around Rs 3.5 billion across more than 300,000 sq ft.The hotel marks Manglam Group’s third collaboration with Marriott International and forms part of its Rs 10 billion hospitality investment roadmap. The agreement was signed by Amrita Gupta, Director, Manglam Group and CEO, Manglam Spa and Resorts, and Rajeev Menon, President, Asia Pacific excluding Greater China, Marriott Interna..

Next Story
Infrastructure Urban

India Warehousing Show 2026 opens at YashoBhoomi

India's warehousing, logistics, and supply chain ecosystem came together as the 15th edition of India Warehousing Show (IWS) 2026 opened at YashoBhoomi, India International Convention & Expo Centre (IICC), Dwarka, New Delhi on June 25 (Thursday). Organised by RX India, the three-day event will run from 25-27 June 2026, bringing together policymakers, industry leaders, technology providers, and supply chain professionals under one roof. It also features a two-day knowledge conference that will run alongside the exhibition. Inaugurated by Pankaj Kumar, Joint Secretary - Logistics, DPIIT..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement