The Indian government has officially released the Draft National Steel Policy Vision 2047 for public consultation, laying down a highly ambitious roadmap to secure the country’s position as a dominant global manufacturing powerhouse. Designed to replace the existing 2017 policy framework, this comprehensive blueprint sets a staggering target of achieving 604 million tonnes of crude steel capacity within the next two decades. For the broader industrial ecosystem, this policy signifies a massive structural evolution, aiming to triple current output while addressing critical bottlenecks in raw material security, technological integration, and environmental sustainability.
Scaling up production and domestic consumption targets
The core of the draft policy revolves around an unprecedented scale-up in manufacturing volume to match India's rapid infrastructure and urbanization demands. Currently, India’s installed crude steel capacity hovers around the 220 million tonnes per annum mark, with actual production at roughly 170 million tonnes. The 2047 vision plans to expand this installed capacity to 604 million tonnes, while pushing actual crude steel production to an estimated 531 million tonnes.
This volumetric leap is closely aligned with robust projections for domestic absorption. The Ministry of Steel estimates that finished steel demand will soar to 505 million tonnes by the centenary of India's independence. Consequently, per capita steel consumption—a key indicator of economic development—is projected to rise dramatically to 302 kilograms. The policy also maintains a healthy outlook for international trade, targeting 45 million tonnes in annual steel exports. By setting these firm metrics, the government is providing primary and secondary steelmakers with the long-term visibility required to execute multi-billion dollar capital expenditure plans.
Tackling raw material import dependency
A critical hurdle recognized by the new draft is India's heavy reliance on imported raw materials, which account for nearly 65 to 70 percent of overall steelmaking costs. While the country enjoys complete self-sufficiency in iron ore extraction, it currently imports a massive 92 percent of its required coking coal. This severe dependency leaves domestic blast furnace operators highly exposed to international price shocks and sudden maritime supply chain disruptions.
To neutralize this vulnerability, the policy introduces aggressive measures for raw material security. The government is pushing for a rapid expansion in domestic coal mining and the establishment of new coal-washing capacities to improve the yield of local mineral reserves. Furthermore, the draft advocates for the strategic acquisition of overseas mineral assets and the formation of long-term supply agreements. In a nod to modern technology, the policy specifically recommends deploying artificial intelligence to optimize coal blending processes at the factory level, ensuring that mills can utilize varying grades of domestic coal without compromising the thermal efficiency of their furnaces.
Elevating the secondary steel sector
The draft policy places a deliberate focus on the modernization of the secondary steel sector, recognizing it as an indispensable pillar of the national manufacturing base. Currently, India’s secondary steel ecosystem comprises approximately 2,550 active units, collectively accounting for nearly 47 percent of the country’s total crude steel output.
Despite this massive contribution, mid-tier producers frequently struggle with restricted access to premium raw materials and capital for technological upgrades. The new framework promises targeted support to help these smaller manufacturers improve their productivity, workplace safety, and technological adoption. By creating a level playing field, the government aims to help secondary producers compete effectively alongside massive integrated steel giants. The policy also envisions the creation of dedicated downstream manufacturing clusters, which will encourage secondary units to shift away from basic commodity steel and towards greater domestic value addition.
Aggressive push towards green steel and decarbonization
Environmental compliance forms a central pillar of the 2047 vision, addressing the heavy carbon footprint inherent in traditional metallurgy. The Indian steel industry currently accounts for roughly 10 to 12 percent of the nation's total carbon dioxide emissions. The sector's average emission intensity stands at a high 2.54 tonnes of carbon dioxide per tonne of crude steel, placing it significantly above the global average of 1.92 tonnes.
To align the industry with India's national net-zero commitment by 2070, the draft outlines a phased, highly structured decarbonization transition. The roadmap emphasizes immediate improvements in energy efficiency and a massive shift toward renewable electricity consumption at the plant level. Looking further ahead, the policy strongly advocates for the integration of green hydrogen-based technologies and the expanded utilization of ferrous scrap in electric arc furnaces. By strengthening the domestic scrap collection and processing ecosystem, the government aims to establish a circular economy that significantly lowers the environmental impact of primary manufacturing.
Digitizing operations and adopting industry standards
Beyond sheer volume and green initiatives, the government is steering the industry toward absolute technological dominance. The policy identifies digital transformation as an urgent priority, heavily promoting the integration of Industry 4.0 standards, common data frameworks, and automated production systems.
By embedding trusted artificial intelligence and autonomous robotics into daily plant operations, domestic mills can achieve unparalleled improvements in resource utilization and product quality. The government plans to support this shift by establishing specialized Centres of Excellence dedicated to indigenous research and innovation. Ultimately, this technological push is designed to expand India's capabilities in producing specialty steel, stainless steel, and high-value alloys. By mastering these advanced manufacturing processes locally, India will permanently reduce its reliance on imported high-end materials, ensuring the domestic supply chain remains fiercely competitive, highly resilient, and deeply integrated into the global commodities market.