A draft policy document on steel — the National Steel Policy: Vision 2047 — put forward by the Ministry of Steel sets out targets of 604 million tonnes of crude steel production capacity annually, alongside 505 million tonnes in finished steel consumption, both pegged to the 2047 horizon. Covering a long-term horizon, the proposal charts a path toward a more self-sufficient and lower-emission steel sector, with bolstering domestic competitiveness and cutting reliance on imported raw materials among its stated aims.

During the 2025-26 period, India's steelmaking apparatus held a raw capacity of 220 million tonnes, turning out 170 million tonnes of crude steel while domestic consumption of finished steel products reached 164 million tonnes. Forecasts place per capita steel use at 302 kg by 2047, with outbound shipments of the metal expected to reach an annual volume of 45 million tons around that same horizon.

Sourcing the raw materials that feed steelmaking operations draws particular attention in the draft, given that those inputs absorb roughly 65 to 70 percent of production costs. Roughly nine-tenths of the coking coal consumed domestically is brought in from abroad. Four strategies outlined in the draft would work together to cut reliance on imported coal: boosting the country's own washing infrastructure, broadening the range of overseas suppliers, acquiring mining assets abroad, and adjusting blend ratios to draw less from foreign sources.

Forecasts place iron ore consumption at 772 million tons by 2047, with coking coal volumes on a parallel upward path toward 236 million tons over the same horizon.

Spread across roughly 2,550 facilities, the secondary steel sector handles close to 47 percent of the nation's total crude steel output — a segment the policy targets for modernisation. Rebar, wire rod, and structural steel bound for construction and infrastructure projects roll out of facilities where electric arc and induction furnaces draw on steel scrap and sponge iron as their primary feedstocks. Among the obstacles catalogued in the draft are shortfalls in raw material supply, gaps in available technology, and a need to raise both workforce skills and safety standards. Among the steps put forward are expanded access to raw materials, investment in technological upgrades, and backing for modernisation efforts aimed at lifting both output capacity and market competitiveness.

Regarding trade, the draft document envisions positioning India as a globally competitive hub for steel supply, with provisions targeting higher-value export growth, broader market reach, and tighter quality standards. Four regions — Africa, the Middle East, ASEAN, and Latin America — are listed as the focal points for broadening the export base. Alongside AI-assisted tools for tracking import flows and addressing trade practices deemed unfair, the framework sets out to build up local output of niche steel varieties — among them grades tailored for vehicles, coated applications, electrical use, and stainless production.

Drawn from draft figures, limestone arrivals totalled 16.2 million tons during FY 2025-26, with the UAE and Oman supplying the bulk of those shipments, while dolomite volumes coming into the country reached 6.5 million tons, sourced predominantly from Bhutan alongside the UAE and Oman.

Under the proposed plan, average emissions intensity across the steel-making sector would fall from roughly 2.54 tonnes of CO2 for every tonne of crude steel produced down to 1.54 tonnes, with that threshold set for 2047. Among the pathways under consideration are expanded use of recycled scrap metal, a shift toward renewable power sources, improvements in energy efficiency, the adoption of hydrogen-based production methods, and the deployment of carbon capture technology across steelmaking operations.

Public feedback on the draft policy put forward by the Ministry of Steel is being accepted through 30 October 2026.