India has released a draft National Steel Policy – Vision 2047 for public consultation, setting a target to expand the country’s crude steel production capacity to 604 million tonnes (MT) by 2047 from approximately 220 MT at present. The proposed policy outlines a long-term roadmap for increasing domestic steel production, securing raw material supplies, improving technology and reducing the industry’s carbon-emission intensity.
The draft projects crude steel production of 531 MT by 2047, assuming an average capacity utilisation rate of 88%. Finished steel consumption is expected to reach 505 MT, compared with 164 MT in 2025-26. Per capita steel consumption is projected to increase from 116 kg to 302 kg, while annual steel exports are targeted to rise to 45 MT.
The proposed framework is intended to replace the National Steel Policy 2017, which had envisaged crude steel capacity of 300 MT by 2030-31. Under the new roadmap, capacity is projected to reach 294 MT by 2030, followed by further expansion towards the 2047 target. Infrastructure development, housing, transportation, renewable energy and manufacturing are expected to remain major sources of steel demand.
Securing raw materials is a central component of the policy, as iron ore and coking coal requirements are projected to increase substantially. Iron ore demand is expected to rise from 299 MT in 2025 to 772 MT by 2047. The Ministry of Steel plans to secure access to high-grade iron ore reserves through overseas assets, joint ventures and other international partnerships. Although India has substantial domestic iron ore resources, the draft identifies the declining availability of high-grade reserves as a concern.
Coking coal demand is projected to increase from 72 MT in 2025 to 236 MT annually by 2047. India currently depends heavily on imports to meet its coking coal requirements, exposing steelmakers to international supply and price fluctuations. The proposed measures include diversifying overseas sourcing, acquiring mineral assets abroad, improving coal blending and expanding coal-washing capabilities to increase the utilisation of domestic resources.
The policy also proposes strengthening the transportation infrastructure required to move raw materials and finished steel. Railways are expected to handle 49% of iron ore transportation by 2047, up from 42% currently, while the roadways’ share is projected to decline from 28% to 9%. Slurry pipeline capacity is envisaged to exceed 299 MT annually. For finished steel, the railways’ share is projected to increase from 40% to 62%, while the roadways’ share is expected to fall from 59% to 35%.
Decarbonisation is another major objective. The draft targets a reduction in average carbon-emission intensity from 2.54 tonnes of carbon dioxide per tonne of crude steel to approximately 1.54 tonnes by 2047, supporting India’s broader net-zero emissions goal for 2070. Proposed measures include improving energy efficiency, increasing renewable energy use, promoting scrap utilisation, adopting hydrogen-based direct reduced iron production, substituting fossil fuels with alternatives such as biochar and exploring carbon capture, utilisation and storage technologies.
Technology development and domestic manufacturing capabilities also feature in the proposed policy. The government plans to encourage the indigenisation of steelmaking technology and capital equipment, expand research and innovation, and promote artificial intelligence and automation across production processes. A Steel Digital Centre of Innovation and a national steel data platform are among the proposed measures to improve access to information on production, quality, energy consumption, emissions, logistics and raw materials.
The draft further proposes measures to strengthen the secondary steel industry and small and medium-sized producers. These include improving access to raw materials, supporting technology upgrades and developing workforce skills. A proposed Steel Industry Safety Council, supported by a dedicated safety directorate, would focus on occupational health, process safety, disaster management and the adoption of uniform safety standards across the industry. The policy also envisages using artificial intelligence to monitor substandard steel imports and supporting domestic production of higher-value steel grades.
International cooperation is expected to play a role in securing raw materials and improving technological capabilities. The ministry has identified opportunities for collaboration across the steel value chain, with existing memoranda of understanding involving Russia, Japan, South Korea, Brazil and Indonesia. Potential areas of cooperation include long-term supply agreements, overseas mining investments, beneficiation facilities and strategic joint ventures.
The draft policy is open for public consultation, with the Ministry of Steel inviting feedback until October 30, 2026. Its final provisions will shape the government’s approach to capacity expansion, raw material security, logistics, technology development and emissions reduction over the next two decades.