Draft National Steel Policy 2047 Overview

India has rolled out a draft National Steel Policy targeting a near-threefold expansion of crude steelmaking capacity to 604 million tonnes by 2047, up from approximately 220 million tonnes currently. Driven by sustained economic expansion and rising demand in infrastructure, housing, transportation, renewable energy, and emerging manufacturing, per capita steel consumption is projected to grow from 116 kg to 302 kg. The policy shifts the sector's focus from capacity expansion to value creation, technology indigenization, and export growth—aiming to reach 45 million tonnes of annual steel exports over the next two decades. To align with India's net-zero roadmap, the Ministry of Steel plans to reduce carbon emission intensity from 2.54 tCO₂/tcs to 1.54 tCO₂/tcs by accelerating scrap utilization, hydrogen-based direct reduced iron, biochar adoption, coal gasification, and carbon capture technologies. To optimize industrial logistics, PM Gati Shakti will be leveraged to map raw material locations against key steel consumption centers. Under this framework, rail transport shares for iron ore and finished steel will rise to 49% and 62% respectively, while slurry pipeline capacity is projected to surpass 299 million tonnes annually by 2047. The draft framework also places strong emphasis on curbing sub-standard steel imports, expanding high-value steel production, modernizing MSME steel units, and deploying AI and automation across operations. To secure critical raw materials and technology, India is leveraging MoUs with key international partners—including Russia, Japan, South Korea, Brazil, and Indonesia—to pursue long-term offtake deals, foreign mining asset acquisitions, beneficiation facilities, and strategic joint ventures.