New Delhi, June 17 -- The recent regulation by the Ministry of Steel has the potential to disrupt supply chains and may impose heavy compliance costs on India's micro, small, and medium enterprises (MSMEs), according to a report by the Global Trade Research Initiative (GTRI).

GTRI said "the abrupt change could disrupt supply chains and impose heavy compliance costs on MSMEs reliant on imported semi-finished steel".

It adds that new regulation has triggered panic among MSMEs that depend on imported semi-finished steel, with fears of large-scale losses and plant closures

The rule, issued by ministry on June 13, mandates that not just the finished or semi-finished steel products, but also the raw materials used to manufacture them must co...