Reuters reports, citing Indian government sources, that India may soon introduce new rules requiring the mandatory use of domestically produced steel in government infrastructure projects. This protectionist measure aims to further reduce steel imports, most of which come from China.

As the world's third-largest steel consumer, India's budget for steel-intensive infrastructure projects (such as ports, roads, railways and power projects) in the 2017/18 fiscal year reached a record US$59 billion.

The Indian government hopes this move will help boost sales for domestic steel companies and ultimately attract investment from international steel giants such as ArcelorMittal and POSCO. According to sources, India's Ministry of Steel may submit the proposal to Prime Minister Modi's cabinet within a month.