Draft Steel Policy Proposes AI-Based Monitoring to Detect Substandard Steel Imports

Draft Steel Policy Proposes AI-Based Monitoring to Detect Substandard Steel Imports
Draft Steel Policy Proposes AI-Based Monitoring to Detect Substandard Steel Imports

India’s draft National Steel Policy – Vision 2047 proposes an artificial intelligence (AI)-based system to detect abnormal import trends and curb the entry of substandard steel. The framework focuses on quality assurance, fair trade and strengthening domestic manufacturing capabilities.

The policy proposes real-time import monitoring, product testing, certification and traceability to identify unusual import patterns and non-conforming steel. It also envisages the use of data analytics to support timely action against unfair trade practices.

According to the draft, more than 60% of India’s steel imports originate from countries with which it has free trade agreements (FTAs). The government proposes pursuing anti-dumping duties, countervailing measures and safeguards, where justified, in coordination with the Directorate General of Trade Remedies and other stakeholders.

The policy also emphasises reducing dependence on imported specialised steel grades by strengthening domestic production, advanced manufacturing technologies, research and development, and quality management. However, trade measures would need to ensure that downstream industries continue to receive essential steel inputs at affordable prices.

India’s finished steel imports declined 32% to 6.5 million tonnes in FY2025-26, while exports increased 36% to 6.6 million tonnes, making the country a net exporter for the year. However, imports rose 29.5% to approximately 3.49 million tonnes between April and August 2026, compared with 2.69 million tonnes in the corresponding period a year earlier.

China, South Korea, Japan, Indonesia and Vietnam were the leading sources of finished steel imports during April–August 2026. The increase has renewed concerns about import competition and the quality of steel entering the domestic market.

The draft policy targets crude steel capacity of 604 million tonnes and finished steel consumption of 505 million tonnes by 2047. Its proposed AI-led monitoring system forms part of a broader strategy to improve the competitiveness of Indian steelmakers and strengthen the industry’s position in global markets.

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