Only Indian steel for govt. contracts, Pg 13

• The government has revamped the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy - 2025.
• Aim: Prioritise domestically manufactured iron and steel for all government tenders and projects.
• Foreign suppliers from nations barring Indian firms in their procurement will also be barred under a reciprocal clause.

Core Norms Introduced

• All iron and steel materials must comply with Melt & Pour norms the steel must be melted and solidified in India.
• Applies to: flat-rolled steel, bars, rods, railway materials, etc.
• Capital goods used in production (e.g. furnaces, rolling mills) must have =50% domestic value addition.

China & FTA Nations in Focus

• China is reportedly a target nation, as it restricts Indian participation in its procurement.
• India also working to curb steel imports from FTA-linked Asian countries affecting local mills.

Ban on Global Tender Enquiries (GTEs)

• GTEs for steel products and related capital goods are prohibited up to ?200 crore, unless specially permitted by the Department of Expenditure.
• This ensures MSME and domestic producers are not outcompeted by foreign players.

India-specific Angle

• Policy aims to protect domestic mills suffering from cheap steel imports and volatile prices, especially post-pandemic.
• Strengthens Indias push for self-reliance in manufacturing under Atmanirbhar Bharat.

Mains Mock Question:

"Critically examine the rationale and implications of Indias revised public procurement policy prioritising domestically manufactured iron and steel. How can such policies balance protectionism with global trade commitments?"