Steel Industry Gets Temporary Relief on BIS Rule; GTRI Urges Full Rollback

The Ministry of Steel on 6 October, 2025,  granted temporary relief to the stainless-steel industry from the 13 June, 2025, directive that introduced the input adherence rule, according to a report by GTRI. Importers are now allowed to bypass this requirement until 31 December, 2025.

The exemption covers three Indian Standards—IS 6911, IS 5522, and IS 15997—for 200- and 300-series stainless steel flat products, providing a short-term reprieve to manufacturers and traders grappling with supply shortages and financial losses.

This relief follows months of disruption caused by the June 13 order, which imposed what industry calls a “double certification trap”,  demanding that not only finished steel products, but also all raw materials and intermediate inputs, be certified by the Bureau of Indian Standards, the report said.

Enforced with barely a day’s notice, the rule triggered import paralysis, leaving shipments stranded, contracts cancelled and factories starved of essential inputs, it said.

Under existing rules, final products already need BIS certification under the Foreign Manufacturers Certification Scheme. The June order went further, demanding that foreign raw material suppliers, many with no direct presence in India, also obtain certification.

The process can take 6-18 months and involves high costs, audits, and performance guarantees. For smaller mills abroad, this is not viable leading to shrinking the pool of suppliers and worsening input shortages. India already consumes 1.5 million tonnes more stainless steel than it produces, forcing even large firms to import over 30% of their needs, said Ajay Srivastava, founder of GTRI.

The policy was challenged in court. On July 17, the Madras High Court issued an interim stay, citing lack of consultation. The Supreme Court lifted the stay on July 30, but asked for a speedy final ruling.

The October 6 exemption acknowledges market realities that importers had paid advances, and domestic supply cannot yet meet demand. But with the relief set to expire on December 31, uncertainty persists.

Industry representatives warn that reinstating the dual certification will strangle smaller firms and distort competition.
A GTRI analysis says the policy could backfire internationally: “If other countries demand similar certifications from Indian suppliers, our exports could face the same bottlenecks.”

For now, the order is seen as a temporary oxygen supply. GTRI has urged the government to withdraw the June 13 rule permanently, calling the current fix a short reprieve, not a solution.