Posted on 24 Apr 2025
India’s micro, small and medium enterprises (MSMEs) will now be able to buy steel at the same prices offered in export markets, notes Kallanish.
This decision by the government aims to help domestic manufacturers, especially in engineering and capital goods, compete better globally.
Steel secretary Sandeep Poundrik, in its latest press interaction, confirmed that primary steel producers would sell steel to MSMEs at export-parity prices.
The move comes after industry groups raised concerns about high local steel prices affecting their profit margins and ability to win export orders.
To make sure this rule is followed, the Steel Ministry has set up a committee to monitor how steelmakers price their products for MSMEs.
This step is expected to support smaller manufacturers for domestic downstream players competing in international tenders for their finished steel products.
A Mumbai-based market expert tells Kallanish: “With this decision, [the] government is telling steel mills that if you can sell steel to foreign buyers at a lower price, you should also offer the same price to MSMEs in India."
“After safeguard duties were announced on flat steel imports on 21 April, local steel prices are expected to go up because imports will be restricted giving more flexibility to domestic steel mills to raise the prices. But with this rule, the government is trying to make sure steel stays affordable for users, especially MSMEs,” he adds.
Another expert notes: “This could significantly benefit sectors reliant on flat steel products, including auto components, fabrication, and equipment manufacturing. With India targeting a robust increase in engineering goods exports, ensuring raw material affordability is seen as a strategic step to support MSME-led manufacturing growth.”
Source:Kallanish
