India’s steel industry is one of the pillars of the country’s infrastructure, construction, automobile, and export sectors. This sector can be called the backbone of the country’s industrial development. However, the BIS certification rules issued on June 13, 2025, posed a major challenge for steel importers and manufacturers.
According to these rules, not only finished steel products but also raw materials had to get BIS approval. So, imports and shipments were stuck at the ports, and production in small factories stopped.
In this situation, the Union Ministry of Steel announced a temporary exemption on October 6, 2025. As per the new instructions, the BIS rules have been relaxed till December 31, 2025. In this article, we will discuss in detail the meaning of this exemption, its impact, and its importance for importers and MSMEs in the future.
Understanding BIS Certification Rules for Steel Products
BIS (Bureau of Indian Standards) certification is a quality control process. It ensures the product is safe and of good quality as per Indian standards. It plays an important role in maintaining consumer protection and the reliability of the industry in the country.
The new order issued by the Ministry of Steel on June 13, 2025, applies to finished products and raw materials to obtain a BIS certificate. So, the same rule applies to foreign suppliers, which was not the case earlier.
Three important Indian Standards (IS) were included under this rule-
IS 6911 – for stainless steel plates, sheets, and strips
IS 5522 – for stainless steel sheets and strips used for cooking utensils
IS 15997 – for stainless steel flat products used for pressure vessels and boilers
These three standards mainly relate to 200 and 300 series stainless steel flat products. These are important for the small and medium enterprises (MSMEs) manufacturing units in the country.
Read more – How to Apply for BIS Certification for Chains for Motorcycles (IS 11740)?
Impact of The June 13 Order
This rule, implemented suddenly, created a “double certification trap” in the steel sector. So, importers have to obtain BIS approval for both raw materials and finished products. This disrupts the entire supply chain.
As a result-
- Many factories are forced to stop production due to the unavailability of raw materials.
- Consignments are stuck at ports.
- And financial pressure on MSMEs and traders increases.
The biggest problem arises in the BIS certification process of foreign suppliers under the Foreign Manufacturers Certification Scheme (FMCS). It was a complex and costly process for foreign manufacturers. This certification process can take 6 to 18 months, which includes audits, site inspections, and submission of performance guarantees.
So, small factories face serious losses due to a lack of raw materials, and the entire steel supply chain is disrupted.
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Legal Challenges and Regulatory Response
The new BIS certification rules have been the subject of intense industry backlash since their implementation. Trade bodies alleged that the government had issued the order without any prior consultation. So, on July 17, 2025, the Madras High Court issued an interim stay order, arguing that adequate consultation and industry input had not been sought. However, on July 30, 2025, the Supreme Court lifted the High Court stay order but directed the government to find a solution soon.
Faced with the ongoing controversy over the rules, supply chain disruptions, and pressure from the industry, the Ministry of Steel finally intervened. On October 6, 2025, a temporary exemption order was issued, postponing the mandatory certification till December 31, 2025. The exemption applies only to three stainless steel standards (IS 6911, IS 5522 and IS 15997) and is not a complete withdrawal of the rules- it is a temporary relief.
Read more – BIS Certification for Electrical Plugs
Industry Reaction and Analyst Views
After the announcement of the exemption, industry associations and trade bodies welcomed it. However, they termed it a “temporary solution.” Business analysts and think tanks like the Global Trade Research Initiative (GTRI) have warned that if the dual certification system is reintroduced in the future, India’s competitive position will suffer.
Experts have also expressed concern that other countries may impose retaliatory certification conditions on Indian steel exports, which will further complicate bilateral trade. This could put both exporters and manufacturers at risk.
In this situation, industry leaders are demanding that the government either withdraw the rule permanently or restructure the BIS protocol. So it balances between security and practicality.
Important Information for Importers and MSME Entrepreneurs
The current exemption has brought relief to importers and MSMEs. Now, those who had paid in advance to foreign suppliers can bring their consignments into the country without any additional certification. Similarly, MSME units can continue production operations using foreign raw materials without any additional approval hassle.
However, it is important to use this time wisely. Businesses should follow some compliance tips from now on—
- Retain all documents related to the grade, source, and consignment of imported steel.
- Regularly monitor new notifications issued by the Ministry of Steel and the BIS portal.
- If certification is reinstated in early 2026, then keep in touch with expert consultants in advance.
Most importantly, the rules may become strict again after December 31, 2025. Therefore, MSMEs and importers should do strategic planning from now on so that there is no further disruption in supply or production in the future.
Read more – What is the Importance of BIS Certification for Brand?
Economic and Trade Impact
The BIS exemption announced on October 6 has stabilized India’s stainless steel supply chain and averted a potential market shortage. Currently, over 30% of the country’s total stainless steel demand is dependent on imports, while domestic production is in a deficit of about 1.5 million tonnes. So, there was a fear that any restriction on imports would disrupt production in the construction, automobile, and home appliance industries.
The exemption has increased the availability of raw materials, which is helping the industry to remain competitive by reducing input costs. It has also brought a temporary balance between domestic and foreign supply. However, according to analysts, this is not a permanent solution. Increasing local production capacity and policy transparency are essential to keep India’s steel industry sustainable in the long term.
The Way Forward Beyond December 31, 2025
The current exemption is only temporary; the rule may be re-enacted after December 31, 2025, or may return in a newly revised form. The government could consider three possible courses of action-
- Permanently withdrawing the rules, with input from industry and policymakers.
- Reintroducing them in a phased manner to give MSMEs and importers time to adapt.
- Introducing a risk-based or third-party certification system, which is more realistic and faster.
Experts say it is now crucial to maintain a continuous dialogue between policymakers and industry so that future policies are predictable and trade-friendly.
Ultimately, the message is clear- clarity and consistency will be key to building trust in India’s manufacturing and export ecosystem.
Read more – BIS Certification for Nuts And Bolts
Policy Recommendations for Sustainable Compliance
The Indian steel industry needs a consistent certification framework, applied according to the level of risk, not a single mandate. If the government establishes mutual recognition with major trading partners through Mutual Recognition Agreements (MRAs), it will be possible to avoid repeated certifications.
In addition, the introduction of a digital certification system will make the approval process much faster and more transparent. Stakeholder consultation and impact assessment should be made mandatory before implementing new policies.
If these measures are implemented, the Indian steel industry will be able to maintain international safety standards with progress in the Ease of Doing Business index. Integrated policymaking is the foundation for future progress.
Conclusion
The relaxation on October 6 has brought an important interim relief to the Indian steel sector. It has stabilized the supply chain and provided short-term relief to MSMEs and importers. However, this relief is temporary, and policy certainty is needed for a permanent solution. Steel importers, producers, and traders need to be aware of compliance and planning from now on.
If your business is part of the steel supply chain, Corpbiz can help you with BIS certification, FMCS registration, and managing the changing regulatory processes. Our experts provide end-to-end consulting for MSMEs, importers, and manufacturers. Join Corpbiz today- stay compliant, ahead of the competition, and future-ready.
Popular Queries About BIS Certification for Steel Industry
What is the latest BIS certification exemption for the steel industry?
The Ministry of Steel announced a temporary exemption on October 6, 2025, which has suspended the BIS certification rules of June 13. Under this exemption, the requirement of dual certification of raw materials and finished products will be suspended till December 31, 2025. This will provide short-term relief to importers and MSMEs.
Which steel standards are covered under this exemption?
The exemption applies to three Indian Standards – IS 6911, IS 5522, and IS 15997. These are mainly applicable to 200 and 300 series stainless steel flat products. This helps in providing critical raw materials for stainless steel production in the country.
Why was the BIS order of June 13 criticized?
The rule was implemented suddenly, where BIS certification was made mandatory for foreign raw material suppliers. The process was costly and time-consuming, as many suppliers did not have any presence in India. This has led to import halts, shipments being stuck, and production coming to a standstill.
How long does it take for foreign suppliers to get BIS certification?
The Foreign Manufacturers Certification Scheme (FMCS) process for foreign manufacturers usually takes 6 to 18 months. It involves audit, guarantee, and inspection costs. This lengthy process is impractical for international suppliers, which has been the main reason for import delays.
What was the role of the court in this regard?
Several cases were filed against the June 13 order. On July 17, 2025, the Madras High Court initially stayed the order, as the rule was implemented without consultation. Later, on July 30, the Supreme Court lifted the stay and ordered an expedited hearing. The government then announced a temporary exemption.
What is the current expiry date for BIS compliance?
The current exemption will be valid till December 31, 2025. After this date, the Ministry of Steel will decide whether to reintroduce the rule, amend or withdraw it permanently. The decision will depend on the industry’s feedback and market conditions.
How is this exemption benefiting MSMEs and importers?
MSMEs and importers are now able to import raw materials without additional certification. This has restarted production, reduced economic pressure, and stabilized raw material supply. It is playing a significant role in maintaining normalcy in the industry while this exemption is in effect.
What are the risks to the industry if the exemption ends?
If dual certification is made mandatory again, small producers may once again face supply shortages and high compliance costs. Analysts say that if other countries demand counter-certification, India’s export competitiveness may suffer.
Can the government make this exemption permanent?
It is likely to be permanent, but it will depend on industry feedback and trade data. Many industry associations are advising the government to introduce a risk-based and realistic certification framework instead of the current rules.
How can Corpbiz help businesses comply with BIS regulations?
Corpbiz provides end-to-end services for BIS registration, FMCS application, document preparation, and audit support. Our team of experts helps importers, manufacturers, and traders stay compliant with regular updates. This keeps your business smart, secure, and future-proof.
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