New Delhi: The government has released a new steel policy to boost India's crude steel capacity to 604 million tonnes by 2047, enhance industry competitiveness and address key import challenges. According to the draft National Steel Policy 2047, finished steel demand will rise to 505 million tonnes (MT) by 2047, per capita consumption to 302 kg and steel exports to 45 MT.
Raw materials account for around 65-70 per cent of steelmaking costs. While India is largely self-sufficient in iron ore, it imports nearly 92 per cent of its coking coal requirement. The policy seeks to reduce import dependence through domestic mining, washery expansion, asset acquisition, long-term supply arrangements, and AI-based optimisation of coal blends. Other raw materials important for the steel sector, like Manganese, Limestone etc., will also remain in policy focus to ensure long-term resource sustainability.
The secondary steel sector, comprising around 2,550 units and nearly 47 per cent of crude steel production capacity, will receive support for enhanced raw material access, technology improvement, skill development and safety.
Decarbonisation is one of the key pillars of the policy. The steel sector contributes about 10-12 per cent of India's CO2 emissions, with an average emission intensity of 2.54 tonnes of CO2 per tonne of crude steel (tCO2/tcs), significantly above the global average of 1.92 tCO2/tcs.
NSP Vision 2047 outlines a phased transition to achieve Net Zero by 2070 through improved energy efficiency, renewable electricity, greater scrap utilisation and use of hydrogen.
The policy also focuses on value-added steel such as stainless steel and speciality steel to reduce dependence on imported raw materials and technology.
It also proposed diversification of raw material sourcing, development of a domestic scrap ecosystem, promotion of downstream manufacturing clusters, indigenous technology development, demand aggregation and setting up Centres of Excellence.
Steel quality will be strengthened through revised Indian Standards and conformity assessment mechanisms. Digital transformation is identified as an emerging priority.
This includes a focus on digital infrastructure, common data standards and Industry 4.0 adoption, driven by trusted AI and autonomous production systems.
The government will continue taking measures to discourage the import of sub-standard, low-quality steel through AI-supported import monitoring and other trade remedial measures. Exports of good-quality steel will also be encouraged.
International cooperation in the steel sector will become a priority area in the coming years, especially for raw material diversification, steel trade and technology collaboration.
India, the second-largest producer and consumer of steel, will collaborate with other countries to take the sector forward in the right direction.
The government introduced a National Steel Policy in 2017, aimed at increasing India's steel manufacturing capability to 300 MT by 2030, along with other parameters such as 160 kg per capita consumption, ensuring raw material availability, among others.
India's crude steel production has increased from about 89 MT in 2014-15 to 170 MT in 2025-26, and finished steel consumption has more than doubled from 77 MT to 164 MT during the same period.
The country's per capita steel consumption remains low at 116 kg in FY26, compared to the global average of 209 kg, indicating significant headroom for growth as infrastructure and manufacturing expand.
Steel Secretary Sandeep Poundrik recently said the 2017 policy 'needed a relook', taking current challenges and requirements into account.
The official said that since 2017, emerging priorities like artificial intelligence, machine learning and technical upgrades require greater focus. Additionally, India's global standing in the steel sector has risen with increasing consumption and capacity.