The Ministry of Steel has revised the Domestically Manufactured Iron & Products (DMI&SP) Policy, aiming to strengthen domestic manufacturing capabilities and promote self-reliance in steelmaking technologies. The policy mandates procurement entirely produced within India and relaxes entry barriers to encourage indigenous technology providers in tenders for steel mill development and infrastructure.
In a significant move aimed at empowering India’s steel sector, the Government of India has amended the Domestically Manufactured Iron & Products (DMI&SP) Policy to enhance domestic manufacturing and promote indigenous technological capabilities. Originally implemented to curb import dependence, the revised policy now introduces stricter compliance norms and incentives for locally produced, high-value products. This update is a strategic step in aligning with the goals of (Manufacture) which emphasizes self-reliance in key industrial sectors.
Core Policy Amendments
The amendments mandate increased usage of domestically manufactured steel across government-funded infrastructure and industrial projects. The revised thresholds ensure that both public and private entities must prioritize Indian manufacturers, even in high-grade applications like bridges, oil & gas pipelines, and defence infrastructure. According to these changes also introduce a streamlined grievance redressal mechanism and tighter quality compliance protocols to ensure project efficiency and transparency.
Impact on Domestic Steel Production
With India already being the second-largest steel producer globally, the enhanced policy is expected to significantly boost capacity utilization among domestic players. Large integrated producers and MSMEs alike are set to benefit as demand for localized steel inputs increases across sectors. The amendments will also help stabilize raw material procurement and support investments in specialized production especially in value-added and high-strength grades. For context, refer on global production rankings.
Focus on R&D and Technology Upgradation
A critical feature of the revised policy is its support for indigenous technology development. The government encourages steelmakers to invest in R&D for new product development, process improvements, and cleaner production methods. Special provisions support collaborative projects with academic institutions and industry R&D centres. This aligns with the objectives of which advocates for reducing technological dependency and nurturing home-grown innovations in core manufacturing.
According to the (Ministry of Steel’s) the revised policy mandates a minimum percentage of domestically manufactured in public procurement. This move aligns with the broader goals of the initiative, designed to bolster domestic manufacturing capabilities and generate employment across the value chain.
Encouraging Sustainability and Green
The DMI&SP amendment also addresses the growing need for sustainable practices in manufacturing. Stakeholders are encouraged to adopt low-emission technologies, use scrap-based electric arc furnaces, and improve energy efficiency. These efforts are in line with India’s commitment to achieving with the sector playing a pivotal role in reducing industrial carbon intensity.
Conclusion
The amended DMI&SP Policy represents a comprehensive strategy to not only protect domestic manufacturers from import competition but also to catalyze long-term capability building and innovation in India’s ecosystem. By reinforcing quality, sustainability, and local content, the government is laying a solid foundation for a resilient, future-ready industry.
Q1. What is the DMI&SP Policy?
The DMI&SP (Domestically Manufactured Iron & Products) Policy mandates the use of locally manufactured in government procurement projects.
Q2. What are the recent amendments to the DMI&SP Policy?
The government has revised the policy to include stricter sourcing norms, promote advanced steel technologies, and support innovation in domestic manufacturing.
Q3. How will the amended policy benefit domestic steel manufacturers?
It provides increased market access for Indian manufacturers by prioritizing locally produced steel in public sector projects and infrastructure schemes.
Q4. Does the policy support green and sustainable steel-making?
Yes, the amendments encourage the adoption of energy-efficient and low-emission production technologies in line with India’s climate goals.
Q5. Who must comply with the DMI&SP Policy?
All central government agencies, PSUs, and departments involved in steel procurement must comply with the policy guidelines.
