To safeguard the domestic steel industry, the Indian steel ministry aims to include “melt and pour” conditions in free trade agreements (FTA), says Indian steel secretary Nagendra Nath Sinha.

According to a steel ministry source, these provisions ensure that any steel export by an FTA partner benefiting under the agreement with India is manufactured by that partnering nation. This measure aims to curtail attempts to use FTA countries as transit points to dump steel from non-FTA countries, such as China, into India, Kallanish notes.

"We are negotiating for ‘melt and pour’ as the product-specific rule of origin ... This provision ensures that FTA benefits are available only to genuine manufacturers in other countries rather than those who re-route their products to India," Sinha told Economic Times.

The Indian domestic steel industry has been cautious about the influx of steel on the back of FTAs.

India is currently negotiating an FTA with the UK, EU and Canada. Recently, India and Australia inked the Economic Cooperation and Trade Agreement (ECTA) which includes a “melt and pour” provision and came into force in December 2022.