India aims to expand its crude steelmaking capacity to 604 million tonnes by 2047 and raise finished steel demand to 505 million tonnes, while reducing dependence on imported coking coal, according to the draft National Steel Policy: Vision 2047.
The draft policy projects per capita steel consumption to rise to 302 kg from the current 116 kg. India’s crude steel production increased from 89 million tonnes in 2014-15 to 170 million tonnes in 2025-26, while installed steelmaking capacity has reached around 220 million tonnes per annum.
Finished steel consumption also grew from 77 million tonnes to 164 million tonnes over the period, reflecting rising demand from infrastructure, construction and manufacturing. Infrastructure and construction account for nearly 67% of domestic steel consumption, while automobiles, engineering goods, appliances and packaging contribute another 28%.
The policy identifies urbanisation, infrastructure development, renewable energy and emerging manufacturing industries as key drivers of steel demand over the coming decades.
Raw material security remains a major challenge for the sector, with raw materials accounting for around 65-70% of steelmaking costs. India imports nearly 92% of its coking coal requirements, leaving the industry exposed to international supply and price fluctuations.
To address this dependence, the draft proposes expanding domestic mining and coal washeries, diversifying overseas sourcing and improving coal-blending practices.
The policy also sets a target to reduce average emissions intensity from 2.54 tonnes of carbon dioxide per tonne of crude steel to 1.54 tonnes by 2047. Proposed measures include improving energy efficiency, increasing the use of renewable electricity and steel scrap, and adopting hydrogen-based steelmaking.
Other priorities include strengthening domestic production of specialty and high-value steel, developing scrap collection and recycling systems, and promoting indigenous manufacturing of steelmaking technology and equipment.
The draft further identifies artificial intelligence, automation and digital technologies as tools to improve productivity, product quality and resource efficiency. The proposed framework seeks to guide the sector’s expansion through 2047, with implementation requiring coordination among the Centre, state governments, industry and other stakeholders.
