India’s Draft Steel Policy Targets 604 Million Tonnes of Capacity by 2047
India has released the draft National Steel Policy – Vision 2047, outlining an ambitious roadmap to expand steel production, strengthen domestic manufacturing and support the country’s long-term economic development. The proposed policy aims to increase India’s crude steelmaking capacity to 604 million tonnes per annum by 2047, positioning the sector to meet rising demand from infrastructure, construction and manufacturing.
The initiative aligns with the vision of Viksit Bharat by 2047 and focuses on more than production expansion. It also addresses raw material security, technological innovation, steel recycling and environmental sustainability. As India continues to develop its infrastructure and industrial capabilities, the steel sector is expected to play an increasingly important role in supporting economic growth and employment.
Rising Steel Demand to Drive Industrial Growth
India’s steel industry has expanded considerably over the past decade, with crude steel production reaching approximately 170 million tonnes in 2025–26. The draft policy projects finished steel consumption to reach 505 million tonnes by 2047, while per capita consumption is expected to increase to 302 kg. These projections reflect anticipated growth in housing, highways, railways, airports, renewable energy and manufacturing.
Construction and infrastructure already account for a substantial share of domestic steel consumption. Continued investment in urban development, industrial corridors and transportation networks is expected to create additional demand. The proposed policy seeks to ensure that domestic production capacity grows alongside these requirements, while an export target of 45 million tonnes could help Indian manufacturers strengthen their presence in international markets.
Strengthening Raw Material Security and Supply Chains
Reliable access to raw materials remains a major priority for the industry. Although India has substantial iron ore resources, it depends heavily on imported coking coal for conventional steelmaking. Fluctuations in international prices and disruptions in global supply chains can increase production costs and affect manufacturers.
The draft policy proposes expanding domestic mining, diversifying import sources and improving the efficiency of raw material transportation. It also highlights the potential of slurry pipelines to transport iron ore more efficiently and reduce logistical costs. These measures could help establish a more resilient supply chain and support the planned expansion of steel production.
Green Steel and Sustainable Manufacturing
Environmental sustainability is another important pillar of the proposed policy. India aims to reduce the steel sector’s average carbon emission intensity from approximately 2.54 tonnes of carbon dioxide per tonne of crude steel to around 1.54 tonnes by 2047.
The proposed approach includes improving energy efficiency, increasing renewable energy use, expanding steel scrap recycling and exploring cleaner production technologies, including green hydrogen-based steelmaking. Greater use of recycled steel could also reduce dependence on virgin raw materials and support a circular economy. Achieving these goals will require continued investment in modern technology, research and cleaner energy infrastructure.
Technology and Specialty Steel to Support Competitiveness
The draft policy also emphasises technological advancement, digitalisation and the development of high-value specialty steel. These products are essential for applications in advanced manufacturing, engineering, transportation and energy infrastructure.
Greater investment in research and development, artificial intelligence and modern production processes could improve productivity, product quality and resource efficiency. The policy also seeks to strengthen domestic manufacturing capabilities and improve quality standards, creating opportunities for Indian producers to compete more effectively in global markets.
The MGMM Outlook
India’s draft National Steel Policy – Vision 2047 outlines an ambitious roadmap to strengthen the country’s steel industry, with a proposed target of 604 million tonnes of crude steelmaking capacity per annum by 2047. Rising demand from infrastructure, housing, transportation and manufacturing is expected to play a major role in driving this expansion. The policy also focuses on strengthening domestic raw material supplies, improving supply-chain efficiency and promoting specialty steel production to enhance India’s industrial capabilities and global competitiveness. These measures align with the broader vision of Viksit Bharat 2047 and aim to support long-term economic growth through stronger domestic manufacturing.
The proposed policy also highlights the importance of technological innovation and environmentally sustainable steel production. Greater investment in renewable energy, steel recycling, energy efficiency and cleaner technologies, including green hydrogen, could help reduce emissions while supporting industrial expansion. Strengthening research and development, adopting advanced manufacturing processes and reducing dependence on imported raw materials will be important for achieving these objectives. By combining production growth with sustainability and technological advancement, India can work towards building a more resilient, competitive and future-ready steel industry that supports infrastructure development, employment generation and the country’s economic ambitions.
(Sources: Business Today, Moneycontrol, The New Indian Express)
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