The Indian government has recently implemented significant amendments to its steel procurement policies, aiming to bolster domestic manufacturing and ensure equitable international trade practices. These changes are encapsulated in the updated ‘Make in India’ guidelines for the steel sector, which introduce a reciprocity clause and mandate the use of locally produced steel in government projects.
Key Highlights of the Revised Policy:
- Reciprocity Clause: The new policy stipulates that companies from countries which do not permit Indian entities to participate in their government procurement processes will be restricted from bidding on public projects in India. This measure seeks to promote fair competition and address trade imbalances.
- Preference for Domestic Steel: The guidelines mandate that all government tenders must prioritize domestically manufactured steel. This move is designed to support local steel producers and reduce dependency on imports.
- Quality Control Orders (QCOs): The policy enforces stringent quality standards for steel products used in government projects. Only steel that meets the specified QCOs will be eligible, ensuring that infrastructure projects maintain high-quality benchmarks.
These policy revisions are part of India’s broader strategy to enhance self-reliance in the steel industry and to create a level playing field in international trade. By encouraging the use of domestically produced steel and implementing measures to ensure fair competition, the government aims to strengthen the domestic steel sector and support national economic growth.
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