India is preparing a new long-term policy framework for the steel industry that aims to take the country's steelmaking capacity to 600 million tonnes by 2047.
Steel Secretary Sandeep Poundrik said the proposed National Steel Policy will provide a roadmap for the sector through 2047 and is expected to be placed in the public domain for stakeholder consultation within about a week.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: India is preparing a new National Steel Policy with a 2047 capacity roadmap
Location: India.
Authority/Organisation: Ministry of Steel.
Action Taken: A new policy framework is being prepared and is expected to be released for stakeholder consultation shortly.
Impact: The proposed roadmap could influence steel capacity expansion, raw-material sourcing, technology investment, imports and decarbonisation over the next two decades.
The proposed target represents a substantial expansion from India's current steelmaking capacity, which was around 220 million tonnes in fiscal 2026. Industry data cited in recent policy discussions puts capacity at more than 220 million tonnes during 2026.
The new policy is also expected to focus on increasing the share of value-added and specialty steel while improving the competitiveness of domestic producers.
Another major component is raw-material security. The policy framework is expected to address access to iron ore and coking coal, including through overseas assets and joint ventures, as demand for steel and its key inputs grows.
Editorial Analysis
Why This Matters
Steel is a core input for infrastructure, construction, manufacturing, automobiles, engineering and other industrial activities. A 600-million-tonne capacity target would therefore have implications beyond steel producers themselves. Higher domestic capacity could support future demand from infrastructure and manufacturing while reducing dependence on imported finished steel in areas where domestic production is competitive. However, expanding capacity alone will not determine the sector's long-term performance. Access to iron ore and coking coal, production costs, technology, energy efficiency, global trade conditions and demand growth will all influence how effectively the proposed roadmap is implemented. The proposed emissions target also places decarbonisation alongside capacity expansion. This means future growth is expected to involve not only producing more steel but also improving the environmental efficiency of production.
India was also a net importer of finished steel during April-August 2026, with imports rising compared with the same period a year earlier. This has added importance to the government's focus on domestic competitiveness and the availability of quality steel.
