New Delhi, Oct. 11 -- The government has released a draft National Steel Policy Vision 2047, aiming for 604 million tonnes of crude steel production, 302 kg of per capita consumption, and 45 MT of steel exports.
The NSP Vision 2047 provides a long-term policy framework to build a globally competitive, technologically advanced and environmentally sustainable steel sector aligned with the vision of Viksit Bharat@2047.
As per the draft policy brought for stakeholder consultation, the aim is also to increase raw-material security, such as iron ore and coking coal, reduce imports, and increase the share of high-end steel in the country's overall steel output. The government has proposed a new policy, even as the current National Steel Policy 2017 aims for 300 MT steel capacity by 2030, 160 kg per capita consumption, and ensuring raw material availability, among other goals.
"Manufacturing and infrastructure will remain the primary drivers of steel demand. Construction and infrastructure currently account for about 67 per cent of steel consumption, while automobiles, engineering goods, appliances and packaging contribute another 28 per cent," the policy draft said.
Demand will also be driven by rapid urbanisation, renewable energy expansion, clean mobility, digital infrastructure, and emerging technologies.
The Policy projects finished steel demand of 505 MT by 2047, requiring crude steel capacity of 604 MT, per capita consumption of 302 kg and steel exports of 45 MT, the draft National Steel Policy 2027 said.
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 new policy projects coking coal demand at 236 million tonnes by 2047, up from 72 million tonnes in 2025. Iron ore demand is projected at 772 million tonnes, up from 299 MT in 2025. The NSP 2017 estimated India's coking coal demand at 99 MT and coking coal at 299 MT.
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. The policy will also keep other key raw materials, such as manganese and limestone, in 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 improved raw material access, technology improvement, skill development and safety.
Decarbonization 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 towards Net Zero by 2070 through improved energy efficiency, renewable electricity, greater scrap utilisation and use of hydrogen.
The draft policy also focuses on value-added steel such as stainless steel and speciality steel, addressing their dependence on imported raw materials and technology.
It proposes diversifying raw material sourcing, developing a domestic scrap ecosystem, promoting downstream manufacturing clusters, developing indigenous technology, establishing Centres of Excellence, and aggregating demand. 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, migrating latter to an Industry 5.0 ecosystem driven by trusted AI and autonomous production systems.
Measures to discourage import of sub-standard low-quality steel will continue to be taken including AI supported import monitoring and other trade remedial measures. Export 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.
As the world's second-largest producer and consumer of steel, India will collaborate with other countries to take the steel sector forward in the right direction.
The government had 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, while 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. 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.
The new policy covers all key aspects of the steel sector and provides a concrete action plan to address challenges and explore opportunities. The policy is expected to guide the Indian steel sector's phenomenal growth over the next two decades.
Published by HT Digital Content Services with permission from Millennium Post.