The draft National Steel Policy Vision 2047 sets out an ambitious roadmap for India’s steel industry, projecting crude steel production of 604 million tonnes, annual per capita consumption of 302 kg and exports of 45 million tonnes by 2047.
The policy lays out a long-term roadmap to enhance the global competitiveness of India’s steel industry, accelerate technological modernisation and promote sustainable production as part of the country’s ambition to become a developed nation by 2047.
The draft also prioritises strengthening domestic supplies of key inputs, curbing reliance on overseas sourcing and expanding the production of specialised, value-added steel grades.
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The draft has been issued for stakeholder consultation and comes as the government looks to revise the National Steel Policy 2017, which targeted steel capacity of 300 MT by 2030 and per capita consumption of 160 kg.
Manufacturing and infrastructure are expected to remain the principal drivers of steel demand. Construction and infrastructure currently account for about 67% of consumption, while automobiles, engineering goods, appliances and packaging contribute another 28%, according to the draft.
Rapid urbanisation, renewable energy expansion, clean mobility, digital infrastructure and emerging technologies are also expected to support demand over the coming decades.
The policy projects finished steel demand of 505 MT by 2047, requiring crude steel capacity of 604 MT. Exports are targeted at 45 MT, reflecting the government’s ambition to expand India’s presence in international markets.
Raw Material Security In Focus
Securing raw materials is a central pillar of the proposed policy, with inputs accounting 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.
Coking coal demand is projected to rise to 236 MT by 2047 from 72 MT in 2025, while iron ore demand is expected to increase to 772 MT from 299 MT during the same period.
The government proposes reducing import dependence through domestic mining, expansion of coal washeries, overseas asset acquisitions, long-term supply agreements and artificial intelligence-based optimisation of coal blends.Â
Manganese and limestone will also receive attention to ensure long-term resource security.The secondary steel sector, comprising around 2,550 units and accounting for nearly 47% of crude steel production capacity, is set to receive support for better raw material access, technology upgrades, skill development and workplace safety.
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Decarbonisation And Technology
The draft identifies decarbonisation as another priority. India’s steel industry contributes around 10-12% of the country’s carbon dioxide emissions, with average emission intensity of 2.54 tonnes of COâ‚‚ per tonne of crude steel, against the global average of 1.92 tonnes.
The policy outlines a phased transition towards net zero by 2070 through energy efficiency, renewable electricity, greater scrap utilisation and hydrogen adoption.
It also seeks to strengthen domestic production of stainless and speciality steel by diversifying raw material sources, developing a domestic scrap ecosystem, promoting downstream manufacturing clusters and supporting indigenous technology.Â
Centres of Excellence and demand aggregation are among the proposed measures.
Digital infrastructure, common data standards and Industry 4.0 adoption will be promoted, with a longer-term transition towards an Industry 5.0 ecosystem powered by trusted artificial intelligence and autonomous production systems.
The draft also proposes stronger quality standards, AI-supported import monitoring and trade remedial measures to discourage substandard steel imports, while encouraging exports of quality products.Â
International cooperation on raw materials, trade and technology is expected to become increasingly important.
India’s crude steel production rose from around 89 MT in 2014-15 to 170 MT in 2025-26, while finished steel consumption more than doubled from 77 MT to 164 MT. Per capita consumption stood at 116 kg in FY26, below the global average of 209 kg.
Steel Secretary Sandeep Poundrik has said the 2017 policy needed a relook in view of changing industry requirements, including advances in artificial intelligence, machine learning and technology.Â
The proposed Vision 2047 policy is expected to guide the sector’s expansion over the next two decades.
(With PTI inputs)
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