India is preparing a new National Steel Policy that targets more than 600 million tonnes of steelmaking capacity by 2047, according to Steel Secretary Sandeep Poundrik. The draft policy is expected to be placed in the public domain soon for stakeholder consultation.
India’s steelmaking capacity stood at around 220 million tonnes in fiscal 2026. The policy is designed as a long-term roadmap for the sector, with plans to support rising domestic demand and strengthen access to critical raw materials.
The draft also targets a reduction in the steel sector’s average carbon emission intensity from about 2.54 tonnes of CO₂ per tonne of crude steel currently to around 1.54 tonnes by 2047. This is aligned with India’s broader net-zero emissions goal for 2070.
The government expects iron ore demand to reach 772 million tonnes and plans to secure high-grade reserves through overseas assets and joint ventures. Coking coal demand is also expected to rise, prompting efforts to diversify supplies.
The policy is also expected to address imports, technology upgrades and the competitiveness of smaller steel producers. A proposed ₹5,000-crore scheme would provide incentives to small producers linked to production and carbon-emission reductions.
