The Indian government has released the updated Domestically Manufactured Iron & Steel Products (DMI&SP) Policy 2025, tightening norms for steel procurement in public sector projects.
The revised policy mandates preference for steel produced entirely in India under the stringent ‘melt and pour’ condition, requiring crude steel to be manufactured domestically from basic raw materials. This marks a shift from earlier policies that allowed procurement based on minimum domestic value addition.
Ritabrata Ghosh, Vice President and Sector Head – Corporate Ratings at ICRA, noted that the previous value addition criteria allowed imported steel to be converted into finished products in India and still qualify for government projects. In contrast, the new policy effectively restricts participation to producers who manufacture steel from scratch within the country.