India is preparing a new National Steel Policy with a target of more than 600 million tonnes of steelmaking capacity and over 500 million tonnes of steel consumption by 2047. The draft policy is intended to replace the National Steel Policy, 2017, which had a horizon up to 2030 and a capacity target of 300 million tonnes.
National Steel Policy Framework
The National Steel Policy is a sectoral policy document for the steel industry in India. The proposed new policy will provide a roadmap up to 2047, which is the centenary year of India’s Independence. As of fiscal year 2026, India’s crude steel capacity stood at 220 million tonnes.
Capacity, Demand and Raw Materials
The draft policy projects iron ore demand at 772 million tonnes and coking coal demand at 214 million tonnes by 2047. It also includes plans to secure raw material access through foreign assets and joint ventures. Steel production in India depends heavily on iron ore, coking coal, and energy-intensive processing routes.
Technology, Emissions and Trade Measures
The policy includes artificial intelligence, machine learning, technology upgradation, decarbonisation, and sustainability as priority areas. It aims to reduce average carbon emission intensity in the steel sector to about 1.54 tonnes of carbon dioxide per tonne of crude steel by 2047, from the current 2.54 tonnes. The policy also proposes safeguard measures, including safeguard duty and anti-dumping duty, to curb cheap and substandard steel imports.
Important Facts for Exams
- India’s National Steel Policy, 2017 had a target of 300 million tonnes of capacity by 2030.
- The new policy is linked to the long-term horizon of 2047, which is the 100th year of Independence.
- The proposed Viksit Bharat Ispat scheme has an outlay of ₹5,000 crore for small steel producers.
- The Carbon Credit Trading Scheme is a market-based mechanism for reducing industrial emissions.
Policy Support for Producers
The proposed Viksit Bharat Ispat scheme is being formulated for small steel producers with incentives linked to production and lower carbon emissions. The Carbon Credit Trading Scheme for larger steel producers is expected to be notified soon. The policy also seeks to improve competitiveness in technology and price in the domestic steel market.
