India’s stainless steel utensil industry stands as one of the country’s quiet manufacturing triumphs — built on ingenuity, driven by micro and small enterprises, and respected across global markets for consistency and quality. For more than seven decades, Indian manufacturers have exported stainless steel utensils with an unblemished record, competing successfully with negligible imports while earning vital foreign exchange for the nation.

Yet today, this proud, self-sustaining ecosystem faces two formidable hurdles: inconsistencies in GST and the BIS Quality Control Order (QCO) — both of which threaten to destabilize an industry that has thrived on local strength and trust.

GST: Progress with Persistent Gaps

The government’s decision to place stainless steel utensils under the 5% GST slab was a step in the right direction. However, critical related products — such as cutlery, serving spoons, kitchen knives, and key raw materials like coils and belts — remain taxed at 18%.

This uneven structure has created a working-capital bottleneck for small and micro manufacturers. Input tax credits often remain unutilized, locking up liquidity and tightening already narrow cash flows.

“We fully support the vision behind GST,” says Sailesh Shah, President of the All India Stainless Steel Industries Association (AISSIA). “But if we want true ease of doing business, the entire utensil value chain must be brought under the 5% bracket. Only then can we free up working capital and empower small enterprises to compete globally.”

AISSIA has formally requested the Finance Ministry and GST Council to rationalize rates across the stainless steel ecosystem, ensuring fair and efficient taxation.

The Quality Control Order: Noble in Intent, Challenging in Practice

The Bureau of Indian Standards (BIS), under the Department for Promotion of Industry and Internal Trade (DPIIT), has mandated certification (IS 14756) for all stainless steel cooking and serving utensils. The rollout begins on October 1, 2025 for large and medium units, January 1, 2026 for small units, and April 1, 2026 for micro enterprises.

While the motive — ensuring consumer safety — is commendable, the industry has voiced deep concern over the implementation model.

The issue? The raw materials used in utensils are already BIS-certified under MTD16, and their chemical composition does not change during manufacturing. Yet, finished products must now undergo a second round of certification.

The process itself is costly and cumbersome: per-SKU certification fees can exceed ₹1 lakh (excluding consultant costs), and compliance can take 3–4 months. For an industry where 90% of players are micro-units, these hurdles could prove fatal.

“Quality must never come at the cost of survival,” emphasizes Shah. “Small manufacturers simply cannot absorb these costs or manage the complexity of multi-level certification. The result could be job losses and the disappearance of traditional family-run units that have served India for generations.”

The lack of clarity on older, unsold inventories, export-bound utensils, and second-hand goods adds further uncertainty.

A Call for Realistic, Inclusive Reform

AISSIA has proposed a series of pragmatic solutions designed to protect both quality and livelihoods:

• Simplified documentation for low-tech and small-scale units
• Reduced BIS fees for micro enterprises
• Shared compliance responsibility between utensil makers and raw-material suppliers
• A clear mechanism for clearing old and export inventories
• Extended deadlines to allow infrastructure and capacity upgrades

In addition, the association has cautioned against potential monopolistic practices disguised as compliance, which could tilt the market toward larger players.

“Compliance should build confidence — not create cartels,” Shah notes. “Regulation must protect consumers and nurture competition, not suffocate small businesses that form the heart of this industry.”

Emerging Trends Shaping India’s Stainless Steel Future

The stainless steel sector is undergoing a period of dynamic change, driven by sustainability, innovation, and global integration:

• Rapid Growth: India’s stainless steel consumption reached about 4.8 million tonnes in FY 2025, growing nearly 8% year-on-year. Analysts expect 7–8% annual growth through 2027, fueled by construction, infrastructure, and kitchenware demand.
• Sustainability at the Core: Manufacturers are investing in recycling, low-carbon smelting, and waste reduction to meet rising ESG expectations and global environmental standards.
• Premiumisation of Kitchenware: Urban consumers are shifting toward designer and high-grade utensils that combine durability, hygiene, and aesthetics — driving value over volume.
• Export Expansion: With improved domestic capacities, Indian utensil makers are eyeing larger global market shares in Europe, the Middle East, and Africa.
• Digital & Smart Manufacturing: Automation, precision forming, and digital quality tracking are gradually entering utensil production, improving consistency and reducing waste.

These shifts show that the future of stainless steel will hinge not only on compliance and policy — but also on innovation, sustainability, and collaboration between all stakeholders.

The Road Ahead

India’s stainless steel utensil industry doesn’t seek special treatment — only fairness, flexibility, and foresight. With sensible reforms to GST and QCO, targeted support for technology upgrades, and incentives for green manufacturing, this sector can continue to shine globally while staying proudly Made in India.

“The future of our industry is undeniably stainless,” concludes Sailesh Shah. “What we must ensure is that it remains inclusive, resilient, and ready to meet the world’s evolving expectations.”