India aims to expand crude steel capacity to 604 mln tons per year by 2047 and increase finished steel consumption to 505 mln tons, according to the draft National Steel Policy – Vision 2047 released by the Ministry of Steel.
The draft sets out a long-term roadmap to strengthen the competitiveness of the domestic steel industry, reduce raw material import dependence and promote low-carbon production. India’s crude steel capacity stood at 220 mln tons in 2025-26, with production reaching 170 mln tons and finished steel consumption totaling 164 mln tons.
Per capita steel consumption is targeted to increase to 302 kg by 2047, while annual steel exports are projected to reach 45 mln tons.
Raw material security is a major focus, as raw materials account for around 65-70pct of steelmaking costs. India imports nearly 92pct of its coking coal requirements. The draft proposes expanding domestic coal washing capacity, diversifying overseas sourcing, pursuing foreign mining asset acquisitions and optimizing coal blends to reduce import dependence. Iron ore demand is projected to reach 772 mln tons by 2047, while coking coal demand is expected to rise to 236 mln tons.
The policy also seeks to modernize India’s secondary steel sector, which comprises around 2,550 units and accounts for approximately 47pct of the country’s crude steel production capacity. These producers typically use electric arc furnaces or induction furnaces to process steel scrap and sponge iron, supplying products such as rebar, wire rod and structural steel for construction and infrastructure.
The draft identifies challenges including raw material availability, technology gaps and the need for improved skills and safety standards. Proposed measures include better access to raw materials, technology upgrades and support for modernization to improve productivity and competitiveness.
On trade, the draft aims to establish India as a competitive global steel supply hub by promoting higher-value exports, improving market access and strengthening quality controls. It identifies Africa, the Middle East, ASEAN and Latin America as priority markets for export diversification. The policy also proposes AI-supported import monitoring and trade-remedial measures against unfair practices, while encouraging domestic production of specialized grades such as automotive, coated, electrical and stainless steel.
The Middle East is also important to India’s raw material supply chain. According to the draft, India imported 16.2 mln tons of limestone in FY 2025-26, mainly from the UAE and Oman, while imports of dolomite reached 6.5 mln tons, primarily from Bhutan, the UAE and Oman.
Decarbonization is another key priority. The draft targets a reduction in average steel-sector emissions intensity from an estimated 2.54 tons of CO2 per ton of crude steel to 1.54 tons by 2047. Proposed measures include greater scrap utilization, renewable energy, energy efficiency, hydrogen-based steelmaking and carbon capture technologies.
The Ministry of Steel has invited comments on the draft policy until October 30, 2026.