New Delhi: The Government has proposed 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 under the draft National Steel Policy Vision 2047.
The draft policy, released for stakeholder consultation, aims to strengthen India's raw material security, reduce import dependence, promote high-value steel manufacturing and accelerate decarbonisation. It seeks to build a globally competitive and technologically advanced steel industry in line with the government's Viksit Bharat@2047 vision.
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The policy also targets per capita steel consumption of 302 kg by 2047, reflecting the expected rise in demand from infrastructure development, manufacturing, urbanisation, renewable energy and emerging technologies.
The proposed framework comes as the government seeks to update the National Steel Policy 2017, which had set a target of 300 MT of steelmaking capacity by 2030 and per capita steel consumption of 160 kg.
Securing critical raw materials is a major priority under the proposed policy, given that raw materials account for around 65-70 percent of steelmaking costs. While India is largely self-sufficient in iron ore, it imports nearly 92 percent of its coking coal requirements.
The draft projects India's coking coal demand to rise to 236 MT by 2047 from 72 MT in 2025. Iron ore demand is projected to increase to 772 MT from 299 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. Manganese and limestone will also receive attention to ensure the long-term availability of essential raw materials.
The policy recognises the importance of the secondary steel sector, which comprises around 2,550 units and accounts for nearly 47 percent 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 this segment.
The draft also places emphasis on 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 is another key pillar of the proposed policy. The steel sector accounts for around 10-12 percent 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 identified as an emerging priority. The policy proposes strengthening digital infrastructure, establishing common data standards and accelerating the adoption of Industry 4.0 technologies, with a longer-term transition towards Industry 5.0 systems driven by trusted artificial intelligence and autonomous production.
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 be another priority, particularly in raw material diversification, steel trade and technology collaboration.
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 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, indicating considerable scope for demand growth as infrastructure and manufacturing activity expand.
Construction and infrastructure currently account for around 67 percent of India's steel consumption, while automobiles, engineering goods, appliances and packaging contribute another 28 percent, according to the draft policy. Demand is expected to receive further support from urbanisation, renewable energy expansion, clean mobility, digital infrastructure and emerging technologies.
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Steel Secretary Sandeep Poundrik had 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 next two decades.
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