New Delhi, India – India has unveiled its ambitious draft National Steel Policy – Vision 2047, setting a target to expand its crude steel production capacity to 604 million tonnes (MT) annually by 2047. The policy projects a finished steel demand of 505 MT and per capita consumption of 302 kg, alongside 45 MT in steel exports, aligning with the government's 'Viksit Bharat' vision.
The comprehensive policy seeks to enhance the steel sector's global competitiveness, significantly reduce dependence on imports, and achieve net-zero emissions by 2070. It addresses crucial areas including raw material security, technological advancements, manufacturing efficiency, trade dynamics, skill development, and workplace safety.
Boosting Production and Consumption
India's steel sector has seen substantial growth, with crude steel production rising from approximately 89 MT in 2014-15 to 170 MT in 2025-26. Finished steel consumption also increased from 77 MT to 164 MT over the same period. The country's share of global crude steel production has expanded from 5.2% in 2014 to an estimated 8.9% in 2025, with an installed capacity of 220 MT per year.
Demand for steel is primarily driven by infrastructure and construction, accounting for about 67% of consumption. Other significant contributors include automobiles, engineering goods, appliances, and packaging, making up 28%. Future growth is anticipated from rapid urbanization, the expansion of renewable energy projects, clean mobility initiatives, digital infrastructure, and emerging technologies.
Strategic Raw Material Management
Raw materials constitute 65-70% of steelmaking costs. While India is largely self-sufficient in iron ore, it imports nearly 92% of its coking coal requirements. The policy proposes a multi-pronged strategy to reduce this reliance, including:
- Increasing domestic coking coal mining.
- Expanding coal washery capacities.
- Acquiring overseas coking coal assets.
- Establishing long-term supply agreements.
- Utilizing artificial intelligence for optimal coal blend formulations.
Focus will also be placed on ensuring stable long-term supplies of other critical raw materials like manganese and limestone. The secondary steel sector, comprising around 2,550 units and contributing 47% of crude steel production, will receive support for raw material access, technology upgrades, skill development, and safety improvements.
Decarbonization Roadmap for 2070
A key pillar of the new policy is decarbonization. India's steel sector currently accounts for 10-12% of the nation's carbon dioxide emissions, with an average emission intensity of 2.54 tonnes of CO₂ per tonne of crude steel, higher than the global average of 1.92 tonnes. The policy outlines a phased transition towards net-zero emissions by 2070 through:
- Improved energy efficiency across operations.
- Increased adoption of renewable electricity.
- Greater utilization of steel scrap.
- Development and deployment of green hydrogen technologies.
Focus on Specialty Steel and Indigenous Technology
The policy emphasizes strengthening the production of value-added steels, including stainless and specialty steels, to reduce import dependence on specific grades and technologies. Proposed measures include diversifying raw material sources, fostering a robust domestic scrap ecosystem, promoting downstream manufacturing clusters, developing indigenous technologies, and establishing Centres of Excellence.
Furthermore, the policy aims to enhance steel quality through revised Indian Standards and stringent conformity assessment mechanisms. Measures to discourage imports of substandard steel, including AI-supported import monitoring and other trade remedies, will be implemented, while exports of high-quality Indian steel will be encouraged.