India has unveiled a draft National Steel Policy – Vision 2047, setting an ambitious target to increase the country's steel production capacity to 604 million tonnes by 2047 from around 220 million tonnes currently. The policy aims to strengthen domestic steel manufacturing, increase consumption and exports, improve raw material security, and reduce carbon emissions across the steel industry.
Key Targets Under India’s Draft National Steel Policy
The proposed policy outlines several long-term targets to support the growth of India's steel sector.
The policy projects per capita steel consumption to increase from approximately 116 kg to 302 kg, reflecting expected growth in infrastructure, housing, transportation and manufacturing.
Focus on Infrastructure, Housing, and Domestic Manufacturing
The draft policy seeks to expand steel usage across infrastructure development, residential construction, transportation, renewable energy, and emerging manufacturing industries. Increasing domestic demand is expected to support the expansion of steelmaking capacity while encouraging the production of higher-value steel products.
The government also aims to move the industry beyond capacity expansion towards greater value creation, technological advancement, and integration across the steel value chain. Indigenization of steelmaking technology and capital equipment is another key priority.
Steel Industry to Reduce Carbon Emissions
Decarbonization is a major component of the proposed policy. The government aims to reduce average carbon emission intensity from 2.54 tonnes of carbon dioxide per tonne of crude steel to approximately 1.54 tonnes by 2047.
To achieve this, the draft identifies several measures:
Increasing the use of steel scrap in production.
Promoting hydrogen-based direct reduced iron (DRI) technology.
Exploring biochar and gasified coal as alternatives to conventional fuels.
Adopting carbon capture, utilization, and storage (CCUS).
Improving energy efficiency and renewable energy adoption.
These measures are intended to support the steel industry's transition towards lower-emission production in line with India's long-term net-zero objective.
Raw Material Security and Transportation Improvements
The proposed expansion will significantly increase demand for essential steelmaking raw materials. Iron ore requirements are projected to reach 772 million tonnes annually by 2047, while coking coal demand could rise to 236 million tonnes.
To address these requirements, the policy proposes improving domestic resource utilization, expanding coal-washing facilities, exploring overseas mining assets, and diversifying raw material supply sources.
The government also plans to use PM Gati Shakti to map raw material availability against steel consumption centers and identify suitable locations for new plants and capacity expansion. Greater use of railways and slurry pipelines is expected to improve logistics efficiency and reduce road congestion.
Technology, Safety, and Quality Improvements
The draft policy also emphasizes technology modernization, quality control, and worker safety. Proposed measures include using artificial intelligence to monitor substandard steel imports and establishing a Steel Digital Centre of Innovation to strengthen research and technological capabilities.
A national steel data platform is also envisaged to track production, quality, energy consumption, emissions, logistics, and raw materials. In addition, the proposed Steel Industry Safety Council and Steel Industry Safety Directorate would help promote occupational health, process safety, disaster management, and uniform safety standards across the sector.
Conclusion
India's draft National Steel Policy – Vision 2047 sets a long-term roadmap for expanding steel production capacity to 604 million tonnes and increasing domestic consumption and exports. Alongside infrastructure-led demand, the proposal focuses on raw material security, technological development, improved logistics, and lower-emission steelmaking. Achieving these targets will depend on investment, resource availability, and the successful implementation of the proposed measures.
FAQs
1. What is India's steel production capacity target for 2047?
India's draft National Steel Policy – Vision 2047 targets steel production capacity of 604 million tonnes by 2047, compared with around 220 million tonnes currently.
2. What is the projected steel consumption target by 2047?
The draft projects finished steel consumption of 505 million tonnes and per capita consumption of 302 kg by 2047.
3. How much steel does India aim to export by 2047?
The proposed policy aims to increase steel exports to 45 million tonnes over the next two decades.
4. How does the draft policy plan to reduce carbon emissions?
It proposes greater scrap utilization, hydrogen-based DRI production, alternative fuels, energy efficiency, and carbon capture technologies to reduce emission intensity.
5. How will the policy support India's construction industry?
The policy aims to encourage steel use in housing, infrastructure, and transportation while strengthening domestic manufacturing, technology development, and raw material supply.
