The government has unveiled a new document—the draft National Steel Policy for 2047, aimed at increasing India's black steel production capacity to 604 million tons by 2047. The objective of this policy is to enhance the industry's competitiveness and address key import-related issues.
According to the draft National Steel Policy for 2047, demand for finished steel is expected to reach 505 million tons by 2047, with per capita consumption rising to 302 kg, and steel exports amounting to 45 million tons.
In steel production, raw materials account for about 65–70 percent of total costs. Although India largely supplies itself with iron ore, the country imports nearly 92 percent of the coke required. The policy mandates reducing import dependence by developing the domestic mining sector, expanding washing plants, acquiring assets, securing long-term supplies, and utilizing AI-based fuel mix optimization.
Furthermore, other raw materials crucial for the steel industry, such as manganese and limestone, remain a focus of the policy, ensuring resource sustainability in the long term. The secondary steel sector, comprising about 2,550 enterprises and accounting for almost 47 percent of black steel production capacity, will receive support in improving raw material access, technological advancement, skill development, and safety.
One of the most critical pillars of this policy is decarbonization. The steel sector contributes 10–12 percent of India's CO2 emissions, with an average emission intensity of 2.54 tons of CO2 per ton of black steel (tCO2/tcs), significantly exceeding the global average of 1.92 tCO2/tcs. The NSP 2047 vision outlines a phased transition to net-zero emissions by 2070 through improved energy efficiency, use of renewable electricity, increased scrap metal utilization, and hydrogen adoption.
The policy also emphasizes high-value steels, such as stainless and special steels, to reduce reliance on imported raw materials and technologies. It proposes diversifying raw material sources, creating a domestic scrap metal ecosystem, promoting deep processing clusters, developing indigenous technologies, aggregating demand, and establishing Centers of Excellence.
Steel quality will be strengthened through the revision of Indian standards and conformity assessment mechanisms. Digital transformation is defined as a priority area, encompassing the development of digital infrastructure, common data standards, and the implementation of Industry 4.0, managed by trusted AI and autonomous production systems. The government will continue to take measures to curb the import of low-quality steel through AI-supported import monitoring and other trade imbalance correction measures, while simultaneously encouraging the export of quality steel.
International cooperation in the steel sector will be a priority in the coming years, particularly in areas of raw material diversification, steel trade, and technological partnership. India, as the second-largest producer and consumer of steel, will collaborate with other nations to steer the sector in the right direction.
Previously, the government introduced the National Steel Policy in 2017, which aimed to increase India's production capacity to 300 million tons by 2030, achieve a per capita consumption of 160 kg, and ensure raw material availability.
Black steel production in India has grown from approximately 89 million tons in 2014–15 to 170 million tons in 2025–26, while finished steel consumption more than doubled from 77 million tons to 164 million tons over the same period. Meanwhile, per capita steel consumption in the country remains low—116 kg in fiscal year 26, compared to the global average of 209 kg, indicating significant growth potential as infrastructure and production expand.
Steel Secretary Sandeep Poundrik recently stated that the 2017 policy 'requires review' given current challenges and requirements. He noted that since 2017, priority areas such as artificial intelligence and machine learning require greater attention, and India's global standing in the steel industry has risen due to increased consumption and capacity.