New Draft Steel Policy Targets 604 million Tonnes Capacity by 2047
- IBEF
- October 12, 2026
India has rolled out a new draft national steel policy targeting 604 million tonnes of capacity by 2047, from around 220 million tonnes currently, with per capita consumption rising to 302 kg from 116 kg. The draft policy aims to raise steel exports to 45 million tonnes over the next two decades and says the sector needs to move beyond capacity-led growth towards value creation, technological advancement and integration across the value chain, with a focus on indigenisation of technology and capital goods. Through measures such as high scrap utilisation, hydrogen-based direct reduced iron, biochar and gasified coal substitution, and carbon capture utilisation and storage, the ministry aims to cut the sector’s average carbon emission intensity to around 1.54 tCO₂/tcs from 2.54 tCO₂/tcs, in line with India’s net zero target. The policy also seeks to promote greater use of steel in infrastructure, housing, transportation, renewable energy and emerging manufacturing sectors.
PM Gati Shakti will be leveraged to map raw material availability against steel consumption centres to identify optimal locations for new plants, with railways projected to carry about 49% of iron ore, up from 42%, and 62% of finished steel, up from 40%. Slurry pipeline capacity is projected to exceed 299 million tonnes a year by 2047. The draft also seeks to prevent sub-standard steel imports, expand domestic production of high-value steel, modernise secondary steel industries and MSMEs, and increase the use of artificial intelligence and automation. India has MoUs in place with Russia, Japan, South Korea, Brazil and Indonesia, with partnerships that may include long-term offtake agreements, mining asset acquisitions, beneficiation plants and strategic joint ventures.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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