The Stainless Steel Induction Furnace Association Gujarat and Stainless Steel Re-Rollers Association Gujarat, representing a large number of Micro, Small and Medium Enterprises (MSMEs) across the stainless steel value chain, have expressed deep concern over the recent suspension of the Quality Control Order (QCO) applicable to stainless steel products.
Mr. Vinay Jain, President, Stainless Steel Induction Furnace Association Gujarat, said: “The QCO was introduced to ensure quality compliance and create a level playing field for all participants in the market. Based on this policy framework, hundreds of MSME units invested in manufacturing capacity, modernization and employment generation. The sudden suspension of the QCO has severely impacted industry confidence and exposed domestic manufacturers to unfair competition from imported material that may not be subject to the same compliance standards. We urge the Government to immediately restore the QCO and safeguard India’s manufacturing ecosystem.”
The association further noted that several major economies across the world have adopted measures to address the impact of heavily subsidized and low-priced imports from China in order to protect domestic industries and maintain fair market conditions.
Mr. Dinesh Shah, President, Gujarat Stainless Steel Re-Rollers Association, said: “Our member units are predominantly MSMEs that provide direct and indirect employment to thousands of families. We manufacture quality stainless steel products and supply essential raw materials to downstream industries across India. The suspension of the QCO has disrupted the level playing field that was created through quality-based regulation and has placed investments, production and employment at risk. The Government must restore the QCO immediately to ensure fair competition and protect Indian manufacturing.”
The associations stated that the suspension of QCO has opened the door for a surge of low-priced imports from China, placing domestic MSME manufacturers under severe pressure and threatening thousands of jobs and substantial investments made by Indian entrepreneurs.
The stainless steel MSME sector in Gujarat supplies critical raw materials to downstream industries including utensils, kitchenware, appliances, fabrication, engineering products and numerous other manufacturing sectors. These industries collectively support large-scale employment and contribute significantly to India’s manufacturing ecosystem.
The associations highlighted that Chinese stainless steel products are entering the Indian market at predatory prices, creating an uneven competitive environment for domestic manufacturers who comply with Indian quality standards, environmental regulations and employment obligations.
The QCO introduced by the Ministry of Steel was intended to ensure that all stainless steel products sold in India met prescribed quality standards through compliance with BIS requirements. Since many foreign suppliers, including several Chinese manufacturers, did not possess the necessary BIS certification, the QCO helped establish a fair and quality-driven market while encouraging domestic manufacturing.
Relying on the Government’s policy direction and commitment towards strengthening domestic manufacturing under the “Make in India” initiative, many MSME units invested significantly in capacity expansion, technology upgrades, quality improvement and employment generation.
However, the recent suspension of the QCO has created considerable uncertainty and has exposed domestic manufacturers to unrestricted imports of low-cost material, putting these investments and jobs at serious risk.
The associations also emphasized that at a time when India is focused on strengthening domestic manufacturing, promoting self-reliance and optimizing foreign exchange outflows, policy consistency is critical for encouraging long-term industrial investment.
The associations respectfully urge the Ministry of Steel and the Government of India to Immediately revoke the suspension of the Quality Control Order (QCO) for stainless steel products.
About the Associations
The Stainless Steel Induction Furnace Association Gujarat represents stainless steel melting and induction furnace units across Gujarat, while the Gujarat Stainless Steel Re-Rollers Association represents stainless steel re-rolling mills and downstream manufacturers. Together, the associations represent a large number of MSMEs that contribute significantly to industrial production, employment generation and value addition within India’s stainless steel sector.
