The draft National Steel Policy Vision 2047 proposes a target of 604 million tonnes (MT) of crude steel production, 505 MT of finished steel demand and 45 MT of steel exports by 2047. Released for stakeholder consultation, the policy aims to strengthen India’s raw material security, reduce import dependence, promote high-value steel manufacturing and accelerate decarbonisation.
The proposed framework seeks to build a globally competitive and technologically advanced steel industry in line with the government’s Viksit Bharat@2047 vision. It also targets per capita steel consumption of 302 kg by 2047, reflecting expected demand growth from infrastructure development, manufacturing, urbanisation, renewable energy and emerging technologies.
The draft comes as the government looks to update the National Steel Policy 2017, which set targets of 300 MT of steelmaking capacity by 2030 and per capita steel consumption of 160 kg.
National Steel Policy Vision 2047 Focuses on Raw Material Security
Securing critical raw materials is a major priority under the proposed policy, as 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 requirements.
The draft projects India’s coking coal demand to rise from 72 MT in 2025 to 236 MT by 2047. Iron ore demand is also expected to increase from 299 MT to 772 MT over the same period.
To reduce import dependence, the policy proposes expanding domestic mining and coal washeries, acquiring overseas assets, entering into long-term supply arrangements and using artificial intelligence-based optimisation of coal blends. It also highlights manganese and limestone to ensure the long-term availability of essential raw materials.
Policy Proposes Support for the Secondary Steel Sector
The draft recognises the importance of the secondary steel sector, which comprises around 2,550 units and accounts for nearly 47% of India’s crude steel production capacity.
The government has proposed measures to improve raw material access, upgrade technology, strengthen skill development and improve workplace safety across the segment.
The policy also emphasises value-added products, including stainless steel and speciality steel, where dependence on imported raw materials and technology remains a challenge. Proposed measures include diversifying raw material sources, developing a domestic scrap ecosystem, promoting downstream manufacturing clusters, strengthening indigenous technology, establishing Centres of Excellence and aggregating demand to support domestic production.
Decarbonisation and Digital Transformation in Focus
Decarbonisation is another key pillar of the proposed policy. The steel sector accounts for around 10–12% of India’s carbon dioxide emissions, with an average emission intensity of 2.54 tonnes of CO₂ per tonne of crude steel, compared with the global average of 1.92 tonnes.
The draft outlines a phased transition towards net-zero emissions by 2070 through energy efficiency improvements, greater use of renewable electricity, increased scrap utilisation and the adoption of hydrogen-based technologies.
Digital transformation is also an emerging priority. The policy proposes strengthening digital infrastructure, establishing common data standards and accelerating the adoption of Industry 4.0 technologies. It also envisages a longer-term transition towards Industry 5.0 systems driven by trusted artificial intelligence and autonomous production.
Quality Standards and Steel Exports
The proposed policy seeks to strengthen steel quality through revised Indian Standards and improved conformity assessment mechanisms.
The government will continue measures to discourage imports of substandard steel, including AI-supported import monitoring and other trade remedial measures. At the same time, the policy aims to promote exports of high-quality steel and strengthen India’s position in international markets.
International cooperation will also be a priority, particularly in raw material diversification, steel trade and technology collaboration.
India’s Steel Production Nearly Doubles in a Decade
India’s crude steel production increased from around 89 MT in 2014–15 to 170 MT in 2025–26. Finished steel consumption more than doubled during the same period, rising from 77 MT to 164 MT.
However, per capita steel consumption stood at 116 kg in FY26, below the global average of 209 kg. This indicates considerable scope for demand growth as infrastructure and manufacturing activity expand.
Construction and infrastructure currently account for around 67% of India’s steel consumption, while automobiles, engineering goods, appliances and packaging contribute another 28%, according to the draft policy. Demand is expected to receive further support from urbanisation, renewable energy expansion, clean mobility, digital infrastructure and emerging technologies.
Steel Secretary Sandeep Poundrik recently said the National Steel Policy 2017 needed a relook in view of changing industry requirements and emerging challenges. He highlighted the growing importance of artificial intelligence, machine learning and technological upgrades since the existing policy was introduced.
The proposed National Steel Policy Vision 2047 is expected to provide a long-term framework for capacity expansion, resource security, technology development, environmental sustainability and improved global competitiveness of India’s steel industry over the coming decades.
