Steel MSMEs Sound Alarm as Chinese Imports Surge 65%

Steel MSMEs are raising fresh concerns after Chinese imports into India jumped 65 percent year-on-year in April 2026.

Industry bodies representing more than 100 small and medium stainless steel manufacturers have urged the government to bring back the Quality Control Order (QCO), saying the surge in low-cost imports is hurting domestic businesses, putting jobs at risk, and creating an uneven market.

Steel MSMEs say restoring quality checks is now critical to protect local manufacturing and ensure fair competition.

The demand comes nearly two months after the Ministry of Steel suspended the Quality Control Order (QCO) on April 27, 2026. The move was aimed at reducing compliance requirements and making it easier for manufacturers, especially MSMEs, to source raw materials. However, industry representatives claim the decision has opened the door to a sharp increase in cheaper stainless steel imports, particularly from China.

Chinese Imports Spike After QCO Suspension

Industry associations, including the Stainless Steel Induction Furnace Association and the Stainless Steel Re-Rollers Association, have written to the government seeking the immediate restoration of the Quality Control Order.

According to official data, stainless steel imports reached 101,252 metric tonnes in April 2026. This marks:

• A 65 percent increase compared to April 2025.
• A 69 percent jump from March 2026, when imports stood at 59,917 metric tonnes.

The industry believes the removal of mandatory quality checks has made it easier for low-cost imports to enter the Indian market, increasing pressure on domestic manufacturers.

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Steel MSMEs Warn of Business and Job Losses

Industry bodies say Steel MSMEs are finding it difficult to compete with cheaper imported products. While Indian manufacturers continue to follow quality standards, environmental norms, and labor regulations, imported products may not always face similar compliance costs.

According to the associations, this creates an unfair pricing advantage for foreign suppliers and threatens the survival of many small manufacturers.

The groups have warned that if the current trend continues, it could lead to:

• Reduced production by domestic manufacturers.
• Financial stress for MSMEs.
• Loss of thousands of jobs across the stainless steel sector.
• Lower returns on investments made by local businesses.

The associations argue that the government's efforts to strengthen domestic manufacturing could be affected if cheaper imports continue to replace locally produced stainless steel.

Industry Seeks Revival of Quality Control Order

The industry has called on the government to immediately restore the Quality Control Order, saying it plays a key role in maintaining product quality while ensuring fair competition for Indian manufacturers.

Industry representatives believe bringing back the QCO would help prevent the entry of substandard products, support Steel MSMEs, and strengthen the country's manufacturing ecosystem under the Make in India initiative.

They also maintain that quality regulations are not just about restricting imports but about ensuring that all products sold in India meet the same standards. According to the associations, restoring the QCO would help create a level playing field for domestic manufacturers while protecting investments, employment, and long-term industry growth.

As imports continue to rise, the government's decision on the industry's request is expected to have a significant impact on India's stainless steel manufacturing sector and thousands of MSMEs that depend on it.