NEW DELHI: The draft steel policy seeks to put in place an AI-powered governance framework and advanced data analytics to ensure early detection of abnormal import trends and boost the competitiveness of the domestic steel industry.
According to the draft National Steel Policy Vision 2047, a three-pronged strategy centred around quality assurance, fair trade and domestic capability should be adopted to reduce avoidable import dependence, strengthen India's steel ecosystem and enhance the competitiveness, resilience and long-term growth of both the steel industry and downstream manufacturing sectors.
The proposed policy seeks to build a roadmap for the Indian steel industry until 2047.
The government has proposed a new policy as the earlier National Steel Policy 2017 needed a relook considering the current challenges and requirements of the steel sector.
Emerging priorities like artificial intelligence, machine learning and technical upgrades require greater focus.
Besides scaling up the country's steel-making capacity to 604 million tonnes (MT), raw material security and technology upgrades, the new policy has laid a special emphasis on checking sub-standard imports to support domestic industry.
According to the draft, the imports of sub-standard or non-conforming steel, sudden import surges and possible circumvention of trade measures pose significant challenges for domestic producers.
These concerns require a robust import governance framework based on testing, certification, traceability and real-time import monitoring supported by advanced analytics for early detection of abnormal import trends, said the draft of the policy that has been brought for stakeholder consultation.
"Measures to discourage import of sub-standard low-quality steel will continue to be taken, including AI-supported import monitoring and other trade remedial measures. Export of good quality steel will also be encouraged," it said.
The document said more than 60 per cent of India's steel imports originate from countries with which India has free trade agreements (FTAs).
The global steel sector is witnessing increasing protectionism, with many countries adopting measures to safeguard their domestic industries against low-cost imports, unfair trade practices and supply chain disruptions arising from geopolitical developments.
It said that where unfair trade practices are established, timely and evidence-based anti-dumping, countervailing and safeguard measures should be pursued, in coordination with the Directorate General of Trade Remedies (DGTR), Department of Commerce, and other stakeholders.
Such interventions should remain targeted and proportionate so that downstream industries continue to have access to essential inputs at affordable prices.
While protecting the domestic industry from unfair imports, import policy should also ensure the availability of specialised and value-added steel grades that are not adequately produced within the country.
Reducing dependence on such imports requires sustained investment in advanced metallurgical technologies, automation, research and development, quality systems, productivity enhancement, energy efficiency, raw material security and logistics infrastructure.
As per the draft policy, India was a net exporter of finished steel during the fiscal year 2025-26.
During FY26, imports of finished steel declined by 32 per cent to 6.5 million tonnes, while exports increased by 36 per cent to 6.6 million tonnes. However, the trend reversed in the ongoing fiscal.
According to official data, India, the world's largest steel making country, imported finished steel worth Rs 36,193.9 crore in April-August this fiscal, and remained a net importer of the commodity during the period.
China, Korea, Japan, Indonesia and Vietnam were the top five countries that contributed significantly to the total 3.4873 million tonnes (MT) of finished steel imports, up 29.5 per cent from 2.6928 MT in April-August FY26.
