Steel Certification Standoff: A Boost or Bust for MSMEs?
The Bureau of Indian Standards (BIS) certification mandate by the steel ministry has stalled imports, affecting thousands of MSMEs. The Global Trade Research Initiative reports increased input costs and contract cancellations. The Supreme Court vacated an interim stay, causing further challenges for the industry.
- Country:
- India
The steel industry in India faces unprecedented challenges as the ministry's new mandate for BIS certification disrupts imports. Thousands of micro, small, and medium enterprises (MSMEs) are reeling due to increased input costs and cancelled contracts, says the Global Trade Research Initiative.
Initially granted a stay by the Madras High Court, the order was recently vacated by the Supreme Court, demanding a full hearing. The mandate, which requires certification not just for finished products but also for raw materials, has left industries like auto and construction scrambling to manage costs and meet international commitments.
Stakeholders demand exemptions similar to those granted to the medical device sector. With import consignments stuck at ports and growing international buyer dissatisfaction, the ripple effects are felt across sectors such as auto-component manufacturing and precision engineering.
(With inputs from agencies.)
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