Govt to fast-tracks BIS approvals for Taiwan steel to boost MSME exports

New Delhi: The government will fast-track Bureau of Indian Standards (BIS) approvals for Taiwanese integrated steel plants, enabling MSME importers to secure raw material under a quality control order (QCO) issued in June this year, two people aware of the matter said on the condition of anonymity.

The steel ministry is working on securing these clearances, said the first person, in a move aimed at helping micro, small, and medium enterprises (MSMEs) import intermediate steel products, add value, and boost exports.

In consultations between the steel ministry and stakeholders in late-August this year, MSME steel importers had flagged delays in approvals for Taiwanese steel plants, some of which were pending since July, said the second person cited earlier.

“Some plants in Taiwan have the necessary machinery to be classified as an integrated steel mill. But they are awaiting approvals from the government. The government is now working on expediting these approvals from the Bureau of Indian Standards,” said the first person.

Imports from Taiwan have been at a standstill since the government’s quality control order in June, the person added.

Queries sent to the Union steel ministry remained unanswered till press time.

Facing delays

The problem, however, arises as Indian importers that have placed orders and paid advances to these steel plants are now facing delays, the second person said.

For these MSMEs, importing cheaper steel products is the only viable option as domestic steel manufacturers sell at higher prices, hurting their margins, according to experts.

The government notified a quality control order on 13 June mandating a BIS certification for all imported raw material that goes into making steel products. The steel ministry’s order mandated that in addition to finished steel products, intermediate raw materials such as stainless steel slabs, and hot rolled and cold rolled coils must be BIS-certified for all imports with a bill of lading dated on or before 16 June.

The move to expedite BIS approvals assumes importance as Taiwan is one of India’s top sources of intermediate and semi-finished steel imports. While data for semi-finished steel products could not be accessed, data from the steel ministry’s import monitoring portal (SIMS portal) shows that Taiwan has always had the fifth or sixth largest share in imports of finished steel products, after other Asian countries such as South Korea, China, Japan, and Vietnam.

Specialty steel

Taiwan is important because of its specialty steel industry, said A.S. Firoz, former chief economist at the Economic Research Unit of the ministry of steel.

Firoz explained that steel sector MSMEs have historically relied on imports as Indian steel makers sold at high prices. But, from a broader perspective, large Indian steel makers also faced export headwinds due to non-tariff barriers in other countries.

“Take Japan, for instance. Japan has a quality approval system which digs deep into the subject company’s financial sustainability. This makes it difficult for many Indian steel producers to secure export markets. At the same time, QCOs set up by India to protect these manufacturers adversely impact smaller companies which rely on cheaper imports,” said Firoz.

The quality control order put approximately ₹150 crore of advance payments in jeopardy, according to a letter written by industry body Federation of Associations of Maharashtra (FAM) on 18 June to the steel ministry.

Subsequently, a writ petition was filed in the Madras High Court by Shree Ramdev Metalex LLP challenging the steel ministry’s 13 June notification as being bad in law and contrary to BIS Act, 2016 and the BIS Rules, 2018.

In June 2025, 0.797 million tonnes (mt) of finished steel were slated for imports under 25,759 such applications, as per the SIMS portal’s monthly report by the Union steel ministry. SIMS stands for Steel Import Monitoring system.

Korea, with a share of 34.6%, followed by China, with a 30.6% share of May 2025 imports, were the top two sources.

The highest share of the imports in June 2025—29.1%—were for the automobile and auto components sector, SIMS data showed.