India’s New Steel Policy Targets 600 Million Tonnes Capacity by 2047

India is preparing a long-term roadmap for the steel industry, with the proposed new steel policy targeting 600 million tonnes of steelmaking capacity by 2047. The plan is aimed at meeting anticipated domestic demand while addressing raw material availability, exports and the sector’s carbon footprint.

India’s steel secretary Sandeep Poundrik said the policy, which is currently in draft form, is expected to be released in the public domain soon. The proposed roadmap will guide the industry over the next two decades.

India’s steelmaking capacity stood at 220 million tonnes in Financial Year 2025–26. The proposed 600-million-tonne target therefore represents a substantial expansion over the coming years.

Focus on raw material security

Securing adequate supplies of iron ore and coking coal is a major component of the proposed policy. According to the draft document, the Ministry of Steel expects India’s iron ore demand to reach 772 million tonnes and plans to strengthen access to high-grade reserves through foreign assets and joint ventures.

Coking coal demand is projected to reach 214 million tonnes. The government is considering diversified sourcing through strategic global outreach and overseas asset acquisitions to reduce supply-related risks.

The focus on raw materials comes as India continues to expand its steel production capacity and faces changing international trade conditions.

Lower carbon intensity targeted

The proposed policy also sets out an emissions reduction pathway for the steel sector. Average carbon emission intensity is targeted to fall to around 1.54 tonnes of carbon dioxide per tonne of crude steel by 2047, compared with the current level of about 2.54 tonnes.

The target is aligned with India’s broader net-zero emissions goal for 2070 and reflects the increasing importance of lower-carbon steelmaking technologies.

Steel imports remain a concern

India was a net importer of finished steel during April-August, importing 3.5 million tonnes, according to the Reuters report. Imports during the period were 29.5% higher than a year earlier, with China accounting for 31.8% of India’s finished steel imports.

The government is also monitoring export conditions as global trade barriers increase. Meanwhile, steel prices are expected to remain sensitive to infrastructure and automotive demand, as well as higher coking coal costs.

The proposed 600-million-tonne capacity target will therefore require significant investment in steel plants, raw material security and cleaner production technologies over the next two decades.