India releases draft steel policy, targets 604 million tonnes of capacity by 2047

India aims to increase finished steel demand to 505 million tonnes by 2047, according to a draft policy released by the government. Meeting that demand would require crude steel production capacity of 604 million tonnes a year. The policy seeks to make the sector more competitive, reduce import dependence and cut emissions.

The National Steel Policy – Vision 2047 projects per capita steel consumption of 302 kg and steel exports of 45 million tonnes by 2047. It aligns the sector's growth with the government's Viksit Bharat vision and outlines measures spanning raw materials, technology, manufacturing, trade, skills and workplace safety.

India's crude steel production has risen from about 89 million tonnes in 2014-15 to 170 million tonnes in 2025-26. Finished steel consumption has increased from 77 million tonnes to 164 million tonnes over the same period.

The draft states that India's share of global crude steel production has also grown from 5.2% in 2014 to about 8.9% in 2025. The country currently has an installed steelmaking capacity of 220 million tonnes a year.

Infrastructure and manufacturing to drive demand

Construction and infrastructure account for about 67% of India’s steel consumption, while automobiles, engineering goods, appliances and packaging contribute another 28%, according to the policy.

Demand is expected to grow further with urbanisation, the expansion of renewable energy, clean mobility, digital infrastructure and emerging technologies. The policy identifies manufacturing and infrastructure as the main drivers of future consumption.

India seeks to reduce coking coal imports

Raw materials account for around 65-70% of steelmaking costs. While India is largely self-sufficient in iron ore, it imports nearly 92% of its coking coal requirement.

The policy proposes reducing this dependence through domestic mining, expansion of coal washeries, overseas asset acquisitions, long-term supply arrangements and the use of artificial intelligence to optimise coal blends. Manganese, limestone and other raw materials will also remain a focus to ensure long-term supplies.

The secondary steel sector, which comprises around 2,550 units and accounts for nearly 47% of crude steel production capacity, will receive support to improve access to raw materials, upgrade technology, develop skills and strengthen safety.

Steel sector faces pressure to cut emissions

Decarbonisation is another key pillar of the policy.

The steel sector accounts for about 10-12% of India's carbon dioxide emissions, with average emission intensity of 2.54 tonnes of CO₂ per tonne of crude steel. That is higher than the global average of 1.92 tonnes.

The roadmap outlines a phased transition towards net-zero emissions by 2070, using measures such as improved energy efficiency, renewable electricity, greater use of scrap and hydrogen.

Focus on specialty steel and domestic technology

The policy seeks to strengthen production of value-added steel, including stainless and specialty steel, while addressing dependence on imported raw materials and technology.

Proposed measures include diversifying raw material sources, developing a domestic scrap ecosystem, promoting downstream manufacturing clusters, developing indigenous technologies and setting up Centres of Excellence. Demand aggregation is also part of the plan.

Steel quality is to be strengthened through revised Indian Standards and conformity assessment mechanisms. The policy also calls for measures to discourage imports of substandard, low-quality steel, including AI-supported import monitoring and other trade remedies. Exports of good-quality steel will be encouraged.