India Plans 600 Million-Tonne Steelmaking Capacity by 2047 Under New Policy

India is preparing a new steel policy that sets out plans to take the country’s steelmaking capacity to 600 million metric tonnes by 2047, laying down a roadmap for the industry over the next two decades. 

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Steel Secretary Sandeep Poundrik said on Tuesday that the policy will be placed in the public domain soon. Apart from expanding capacity, the plan addresses some of the industry’s other pressing requirements, including access to raw materials and lowering carbon emissions. 

India currently has steelmaking capacity of 220 million tonnes, as of fiscal 2026. Reaching the proposed 2047 level would therefore require a substantial expansion over the coming years. 

Securing enough raw material to support that growth is one of the areas covered by the policy. Iron ore demand is expected to reach 772 million tonnes. The plan includes gaining access to high-grade reserves through overseas assets and joint ventures. 

Coking coal, another important input for steel production, is also part of the roadmap. Demand is expected to reach 214 million tonnes, with plans to widen sourcing options internationally and acquire assets overseas. 

The policy also puts a number against the steel industry’s longer-term emissions goal. Average carbon emission intensity is proposed to come down from the current 2.54 tonnes of carbon dioxide per tonne of crude steel to around 1.54 tonnes by 2047. This forms part of India’s broader net-zero emissions goal for 2070. 

The new policy comes at a time when India continues to import a significant amount of finished steel. During April-August, the country imported 3.5 million tonnes, an increase of 29.5% from the same period a year earlier. 

China was the largest supplier during those five months, accounting for 31.8% of India’s finished steel imports. 

Poundrik identified raw material availability and exports as major challenges for the industry, particularly as countries put up more trade barriers. 

Steel prices in India are also expected to move higher in the coming weeks as demand from infrastructure and automobile companies picks up after the monsoon. Rising coking coal costs are adding to production expenses for steelmakers. 

With the new policy, the government is setting out how the industry could expand capacity while securing the materials needed to support that growth and bringing down its carbon intensity over the years leading to 2047.