MSME Stainless Steel Industry Urges Centre to Reinstate Quality Control Order Amid Surge in Chinese Imports

The Indian stainless steel MSME sector has urged the Union Government to reinstate the Quality Control Order (QCO) after its suspension triggered a significant increase in imports of low-priced stainless steel products from China. Industry representatives believe the move is necessary to safeguard domestic manufacturers, protect investments and preserve employment in one of India’s key manufacturing segments.

More than 100 micro, small and medium enterprises (MSMEs), represented by the Stainless Steel Induction Furnace Association and the Stainless Steel Re-Rollers Association, have submitted a formal request to the Ministry of Steel seeking immediate restoration of the Quality Control Order.

The Ministry had suspended the QCO through an order issued on April 27 with the objective of easing raw material sourcing and reducing compliance requirements for domestic manufacturers, particularly MSMEs. However, industry associations argue that the decision has unintentionally opened the market to a flood of inexpensive imports, creating severe competitive pressure for Indian producers.

According to industry data, stainless steel imports reached 101,252 metric tonnes in April 2026, registering a 65 per cent increase compared with 61,143 metric tonnes during the same month last year. Imports also recorded a 69 per cent month-on-month rise over March 2026, when 59,917 metric tonnes were imported.

Industry bodies have expressed concern that the continued inflow of lower-priced imports could undermine domestic manufacturing capacity, discourage fresh investments and affect thousands of jobs across the stainless steel value chain. They argue that Indian manufacturers continue to comply with stringent Bureau of Indian Standards (BIS) requirements, environmental regulations and labour obligations, while imported products often enter the market at significantly lower prices.

The associations have also pointed out that many MSME units invested heavily in expanding production capacity, upgrading technology and improving product quality based on the Government’s long-term commitment to strengthening domestic manufacturing under the Make in India initiative.

The industry has urged the Government to review the current policy and restore the Quality Control Order at the earliest. Stakeholders believe that maintaining quality standards while ensuring fair competition is essential to protecting India’s stainless steel manufacturing ecosystem and sustaining long-term industrial growth.