India Government Steps Up Steel Sector Support and Recycling Push

India’s government is actively enhancing its support for the steel sector and accelerating its push towards a circular economy through various policy interventions. As steel remains a de-regulated industry, the government acts primarily as a facilitator, crafting a policy environment conducive to its sustainable growth and increased domestic production. Recent measures include promoting ‘Made in India’ steel, reducing input costs for manufacturers, and stringent quality controls. These efforts are aimed at bolstering the industry’s competitiveness while simultaneously addressing environmental concerns through robust recycling frameworks.

Several key initiatives have been undertaken to achieve these objectives. The Domestically Manufactured Iron & Steel Products (DMI&SP) Policy encourages the use of ‘Made in India’ steel in government procurement. To further boost domestic production and reduce reliance on imports, the Production Linked Incentive (PLI) Scheme for Specialty Steel has been launched, attracting crucial capital investments. The Union Budget’s strong focus on infrastructure expansion has also played a significant role in driving domestic steel demand. Additionally, adjustments in Basic Customs Duty on ferro nickel and ferrous scrap imports have helped lower production costs for the industry, making it more competitive.
On the regulatory front, the Steel Import Monitoring System (SIMS) has been revamped to provide detailed import data, assisting industry stakeholders in strategic planning. Steel Quality Control Orders have also been introduced, effectively banning sub-standard or defective steel products in both domestic markets and imports, thereby ensuring the availability of high-quality steel for various applications.

These measures collectively aim to create a more robust and transparent steel ecosystem within the country, ensuring the quality and availability of materials essential for national growth and development. On the sustainability front, the government is vigorously promoting circular economy practices across the steel industry to maximize scrap recycling and minimize environmental impact. The Steel Scrap Recycling Policy (2019) provides a collaborative framework among various ministries to enhance the recycling of ferrous scrap from diverse sources. Furthermore, the Vehicle Scrapping Policy, formulated by the Ministry of Road Transport and Highways (MoRTH), actively promotes the phasing out of older, polluting vehicles. It outlines comprehensive rules for the Registration and Functioning of Vehicle Scrapping Facilities (RVSFs), ensuring proper depollution and material recovery from End-of-Life Vehicles (ELVs).

Further reinforcing this commitment, the Ministry of Environment, Forest & Climate Change introduced the Environment Protection (End-of-Life Vehicles) Rules, 2025, mandating Extended Producer Responsibility (EPR) and setting specific scrapping targets for vehicle producers. Additionally, the Ministry of Shipping, Ports and Waterways has notified the Recycling of Ships Act, 2019, to promote safe and environmentally sound ship recycling practices. This comprehensive approach, as conveyed by a Minister of State, underscores the government’s dedication to sustainable growth in the steel sector.

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India Government Steps Up Steel Sector Support and Recycling Push