New Delhi, Oct. 12 -- India has unveiled an ambitious steel policy to raise crude steel production capacity to 604 million tonnes per annum (mtpa), up from 220 mtpa now.
The draft National Steel Policy: Vision 2047, now open for public consultation, also proposes increasing per capita steel consumption to 302 kg and exports to around 45 MT by 2047.
India, the second-largest steel producer after China, has significantly increased its steel production capacity over the years. Crude steel production rose from about 89 MT in 2014-15 to 170 MT in 2025-26, raising India's share of global steel production to 8.9% in 2025 from 5.2% in 2014.
"The coming decades present significant opportunities and challenges for the sector. India's aspiration to become a Viksit (developed) nation by 2047, sustained economicgrowth and rapid urbanisation are expected to substantially increase domestic steeldemand," the document said.
Manufacturing and infrastructure will remain the primary drivers of steel demand. Demand will also be driven by rapid urbanisation, expansion of renewable energy, clean mobility, digital infrastructure and emerging technologies. The draft policy projects finished steel demand to go up to 505 MT by 2047 from around 164 MT now.
Construction and infrastructure currently account for about 67% of steel consumption, while automobiles, engineering goods, appliances and packaging contribute another 28%.
The draft document proposes supporting the secondary steel sector, which currently accounts for around 47% of steel production. It proposes supporting the sector, mainly through re-rolling facilities, induction furnaces, and sponge iron units, with improved access to raw materials, technology upgrades, skill development, and safety.
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 draft policy seeks to reduce import dependence through domestic mining, washery expansion, asset acquisition, long-term supply arrangements, and AI-based optimisation of coal blends.
Highlighting the importance of decarbonisation, Vision 2047 outlines a phased transition to Net Zero by 2070 through improved energy efficiency, renewable electricity, greater scrap utilisation, and hydrogen use. The steel sector contributes about 10-12% 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.
With the rapid expansion of the steel sector, the document said, India must also focus on indigenisationof technology and capital goods for steelmaking, while building domestic capabilitiesin speciality steel manufacturing to enhance global competitiveness.
Published by HT Digital Content Services with permission from Millennium Post.