India’s Draft Steel Policy Targets 604 Million Tonnes of Capacity by 2047

New Delhi, October 12, 2026: India has released a draft National Steel Policy–Vision 2047 that proposes expanding the country’s crude steelmaking capacity to 604 million tonnes by 2047. The proposal aims to support industrial growth, strengthen access to raw materials and reduce the carbon-emission intensity of steel production.

The draft was released for public consultation in October, according to Reuters and Business Standard. The proposed targets are long-term projections, not guaranteed outcomes, and the document may change after feedback from industry stakeholders.

What Is the Government Proposing?

The draft policy envisages increasing crude steelmaking capacity from around 220 million tonnes at present to 604 million tonnes by 2047. It also projects crude steel production of 531 million tonnes and finished steel consumption of 505 million tonnes by that year.

The document’s projections assume average annual economic growth of around 7 per cent and steel-sector capacity utilisation of 88 per cent. Actual production and demand will depend on investment, economic conditions, infrastructure development and other factors.

Why Does India Want to Expand Steel Production?

Steel is an important material for construction, transport infrastructure, manufacturing, machinery and energy projects. Higher domestic production capacity could help meet future demand as the economy develops.

However, expanding capacity also requires investment in factories, transport networks, electricity, technology and raw materials. The draft therefore places considerable emphasis on ensuring that the industry can obtain the iron ore and coking coal needed for production.

Iron Ore and Coking Coal Demand Could Rise

The draft projects that iron ore requirements could increase to 772 million tonnes by 2047, compared with around 299 million tonnes in 2025. Coking coal demand is projected to reach 236 million tonnes, up from approximately 72 million tonnes.

This creates a major supply-chain challenge. Although India produces substantial quantities of iron ore domestically, the industry imports much of its coking coal requirement.

The proposed measures include expanding domestic raw-material supply, improving coal-washing capacity, entering longer-term supply arrangements and exploring overseas assets. The aim is to strengthen the industry’s access to essential materials and reduce vulnerabilities associated with imports.

A Focus on Lower-Emission Steelmaking

The draft also proposes reducing average carbon-dioxide emissions intensity from approximately 2.54 tonnes per tonne of crude steel to 1.54 tonnes by 2047.

Proposals include improving energy efficiency, expanding renewable-energy use, increasing scrap utilisation and introducing cleaner production technologies over time. The roadmap also discusses green-hydrogen-based direct reduced iron and carbon capture, utilisation and storage.

These measures would require technological development, financing and supporting infrastructure. The proposed reduction refers to emissions intensity per tonne of crude steel, not necessarily a reduction in the industry’s total emissions.

What Could the Policy Mean for Businesses?

If implemented successfully, the proposals could influence decisions across steel production, mining, recycling, industrial transport and related manufacturing sectors.

Steelmakers may need to invest in capacity, production efficiency and cleaner technologies. Raw-material suppliers, infrastructure developers and scrap-recycling businesses could also be affected by the policy’s eventual direction.

Nevertheless, the draft does not guarantee that specific companies will benefit or that new jobs will be created in particular locations. These outcomes would depend on future investment decisions and the measures eventually adopted.

Is the Draft Policy Final?

No. The National Steel Policy–Vision 2047 is a draft proposal. The government has invited feedback from industry stakeholders, and the final policy may differ from the current document.

Readers and businesses should therefore treat the numerical targets as proposed long-term goals rather than settled commitments. Further official updates should be checked before making investment or business decisions based on the draft.

Official and News Sources

• Reuters: https://www.reuters.com/world/india/india-unveils-steel-policy-aiming-604-million-tons-capacity-by-2047/
• Business Standard: https://www.business-standard.com/economy/news/economy-news-draft-steel-policy-targets-604-mt-capacity-by-2047-126101100296_1.html
• Ministry of Steel: https://steel.gov.in/

Reporting note: This article summarises published reporting on the draft policy as of October 12, 2026. The Ministry of Steel’s official notifications should be checked for the latest draft, consultation details and any subsequent changes.