India Targets 604 MT Steel Capacity by 2047
COAL & MINING

India Targets 604 MT Steel Capacity by 2047

India plans to nearly triple its crude steelmaking capacity to 604 mn tonnes (MT) by 2047 and raise finished steel demand to 505 MT, according to the draft National Steel Policy – Vision 2047. The framework projects per capita steel consumption increasing to 302 kg from the current 116 kg.

Crude steel production rose from 89 MT in 2014-15 to 170 MT in 2025-26, while finished steel consumption increased from 77 MT to 164 MT. Installed steelmaking capacity has reached about 220 MT per annum. Infrastructure and construction account for about 67 per cent of domestic steel consumption, while automobiles, engineering goods, appliances and packaging contribute another 28 per cent.

The draft identifies urbanisation, infrastructure development, renewable energy and emerging manufacturing sectors as key drivers of future demand. It also highlights raw material security as a major challenge, with raw materials accounting for about 65 to 70 per cent of steelmaking costs. India currently imports nearly 92 per cent of its coking coal requirements.

To reduce this dependence, the proposed policy calls for expanded domestic mining and coal washeries, diversified overseas sourcing and improved coal-blending practices. It also seeks to lower average emissions intensity from 2.54 tonnes of carbon dioxide per tonne of crude steel to 1.54 tonnes by 2047 through greater energy efficiency, renewable electricity, increased scrap use and hydrogen-based steelmaking.

The framework proposes strengthening domestic capabilities in specialty and high-value steel, alongside improved scrap collection and recycling systems. It also supports indigenous manufacturing of steelmaking technology and equipment, while identifying artificial intelligence, automation and digital technologies as tools to improve productivity, quality and resource efficiency. Implementation will require coordinated action by the Centre, state governments, industry and other stakeholders.

India plans to nearly triple its crude steelmaking capacity to 604 mn tonnes (MT) by 2047 and raise finished steel demand to 505 MT, according to the draft National Steel Policy – Vision 2047. The framework projects per capita steel consumption increasing to 302 kg from the current 116 kg. Crude steel production rose from 89 MT in 2014-15 to 170 MT in 2025-26, while finished steel consumption increased from 77 MT to 164 MT. Installed steelmaking capacity has reached about 220 MT per annum. Infrastructure and construction account for about 67 per cent of domestic steel consumption, while automobiles, engineering goods, appliances and packaging contribute another 28 per cent. The draft identifies urbanisation, infrastructure development, renewable energy and emerging manufacturing sectors as key drivers of future demand. It also highlights raw material security as a major challenge, with raw materials accounting for about 65 to 70 per cent of steelmaking costs. India currently imports nearly 92 per cent of its coking coal requirements. To reduce this dependence, the proposed policy calls for expanded domestic mining and coal washeries, diversified overseas sourcing and improved coal-blending practices. It also seeks to lower average emissions intensity from 2.54 tonnes of carbon dioxide per tonne of crude steel to 1.54 tonnes by 2047 through greater energy efficiency, renewable electricity, increased scrap use and hydrogen-based steelmaking. The framework proposes strengthening domestic capabilities in specialty and high-value steel, alongside improved scrap collection and recycling systems. It also supports indigenous manufacturing of steelmaking technology and equipment, while identifying artificial intelligence, automation and digital technologies as tools to improve productivity, quality and resource efficiency. Implementation will require coordinated action by the Centre, state governments, industry and other stakeholders.

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