Draft National Steel Policy 2047 Targets 604 MT Capacity, Details Growth Path

The government has unveiled the draft National Steel Policy 2047, outlining ambitious goals to elevate India's crude steel capacity to 604 million tonnes (MT) by 2047. The policy aims to enhance industry competitiveness and address critical import challenges, projecting finished steel demand to reach 505 MT, per capita consumption to 302 kg, and steel exports to 45 MT by the same year.

Raw materials constitute a significant 65-70 percent of steelmaking costs. While India boasts self-sufficiency in iron ore, it heavily relies on imports for nearly 92 percent of its coking coal requirements. The new policy seeks to mitigate this import dependence through a multi-pronged approach, including promoting domestic mining, expanding washery capacities, facilitating asset acquisition, securing long-term supply arrangements, and implementing AI-based optimization for coal blends. The policy also emphasizes long-term resource sustainability for other vital raw materials such as Manganese and Limestone.

Support for the secondary steel sector, which comprises approximately 2,550 units and contributes nearly 47 percent of the crude steel production capacity, is a key focus. This support will encompass improved raw material access, technology upgrades, skill development, and safety enhancements. Decarbonisation stands as a pivotal pillar of the policy, recognizing that the steel sector accounts for 10-12 percent 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 achieving Net Zero emissions by 2070. This will be realized through enhanced energy efficiency, increased adoption of renewable electricity, greater scrap utilization, and the integration of hydrogen in steel production processes. The policy also prioritizes value-added steels, such as stainless steel and speciality steel, to reduce reliance on imported raw materials and technology. Other proposed measures include diversifying raw material sourcing, fostering a domestic scrap ecosystem, promoting downstream manufacturing clusters, indigenous technology development, demand aggregation, and establishing Centres of Excellence.

To ensure steel quality, the policy will strengthen Indian Standards and conformity assessment mechanisms. Digital transformation is identified as an emerging priority, focusing on digital infrastructure, common data standards, and Industry 4.0 adoption, driven by trusted AI and autonomous production systems. The government will continue measures to discourage the import of sub-standard, low-quality steel through AI-supported import monitoring and other trade remedial actions, while simultaneously encouraging exports of high-quality steel. International cooperation will become a priority, particularly for raw material diversification, steel trade, and technology collaboration, as India, the second-largest producer and consumer of steel, seeks to collaborate with other nations.

This new policy relooks at the 2017 National Steel Policy, which aimed for 300 MT capacity by 2030 and 160 kg per capita consumption. Since 2014-15, India's crude steel production has risen from about 89 MT to 170 MT in 2025-26, with finished steel consumption more than doubling from 77 MT to 164 MT. Despite this growth, India's per capita steel consumption remains low at 116 kg in FY26 compared to the global average of 209 kg, indicating substantial growth potential as infrastructure and manufacturing expand. Steel Secretary Sandeep Poundrik noted the 2017 policy "needed a relook" due to emerging priorities like artificial intelligence, machine learning, technical upgrades, and India's enhanced global standing in the sector.

What to watch: The practical implementation of decarbonisation strategies and digital transformation initiatives in the coming years.

Editor's note: The article comprehensively covers the draft National Steel Policy 2047, incorporating all relevant statistics and policy pillars mentioned in the source.