National Steel Policy: Vision 2047 Targets 505 MT Steel Demand and 604 MT Capacity
The government's National Steel Policy: Vision 2047 projects India's finished steel demand at 505 million tonnes (mt) by 2047. To meet it, India will need 604 mt of crude steel capacity.
India's crude steel production rose from about 89 mt in 2014-15 to 170 mt in 2025-26. Finished steel use rose from 77 mt to 164 mt. Installed capacity has reached 220 million tonnes per annum (MTPA).
India's share of world crude steel output grew from 5.2% in 2014 to about 8.9% in 2025. The policy projects per capita steel use of 302 kg and exports of 45 mt by 2047.
A key aim is to cut dependence on imported raw materials, which make up 65-70% of steelmaking costs. India imports about 92% of its coking coal. The policy proposes more domestic mining and coal washeries, buying mines abroad, long-term supply deals and using artificial intelligence (AI) to choose the best coal blends.
On climate, steel produces 10-12% of India's carbon dioxide (CO2) emissions. Indian plants emit 2.54 tonnes of CO2 per tonne of crude steel, against a world average of 1.92 tonnes. The policy plans a phased shift towards net zero by 2070 through energy efficiency, renewable power, more scrap use and hydrogen.
It also supports the secondary steel sector (about 2,550 small units, with about 47% of capacity), proposes a Steel Industry Safety Council, and plans AI-based import monitoring and trade remedies against poor-quality imports.
National Steel Policy: India's Roadmap for the Steel Sector
A National Steel Policy is a long-term plan made by the Government of India for the steel industry. It sets targets for how much steel India should be able to make and use, and lists the steps to get there: raw materials, technology, finance, demand and the environment. It is prepared by the Ministry of Steel. Steel matters because almost everything a growing country builds, from bridges and railways to cars and homes, needs it.
The new policy replaces the 2017 roadmap, whose 300 mt target for 2030-31 is now close in sight with capacity at 220 MTPA. Vision 2047 doubles the ambition and puts raw material security, especially coking coal, at the centre.
Green Steel: Decarbonising Iron and Steel Making
Green steel is steel made with very little or almost no release of carbon dioxide (CO2), the main gas causing climate change. Normal steel making burns huge amounts of coal. Green steel replaces coal with cleaner options like hydrogen made from renewable energy, electricity from solar and wind, and recycled scrap steel. Because steel is one of the most polluting industries, India cannot reach its climate goals without making steel greener.
Indian steel emits about 2.54 tonnes of CO2 per tonne, well above the world average of 1.92 and the green threshold of 2.2. Vision 2047's phased plan of renewable power, scrap and hydrogen is meant to close this gap, which also matters for exports to markets like the European Union that are starting to tax carbon at the border.
- Finished steel demand projected for 2047: 505 mt; crude steel capacity needed: 604 mt
- Per capita steel use target (2047): 302 kg; exports target: 45 mt
- Crude steel production: 89 mt (2014-15) → 170 mt (2025-26)
- Finished steel consumption: 77 mt → 164 mt
- Installed capacity: 220 MTPA
- India's share of world crude steel: 5.2% (2014) → about 8.9% (2025)
- Imported raw materials: 65-70% of steelmaking costs; coking coal import dependence: about 92%
- Steel's share of India's CO2 emissions: 10-12%
- Emission intensity: 2.54 t CO2/t crude steel (India) vs 1.92 t (world average)
- Secondary steel sector: about 2,550 units, about 47% of crude steel capacity
- Net zero target: 2070