India targets 600 MT steel capacity under new industrial policy framework

India's steel sector is set for significant expansion under a newly announced policy framework designed to strengthen the country's industrial base and global competitiveness. According to the Steel Secretary, the government's roadmap targets production capacity of 600 million tonnes annually, with domestic consumption expected to reach 500 million tonnes in the medium term.

To support this growth trajectory, particularly among smaller players in the sector, the government has introduced the Viksit Bharat Ispat scheme with an allocated budget of ₹5,000 crore. The initiative is structured to incentivize producers based on output volumes while simultaneously encouraging a shift towards lower carbon emission manufacturing practices.

The dual focus on production expansion and environmental sustainability reflects India's broader commitment to balancing industrial growth with climate considerations. The incentive structure is designed to reward increased production capacity while penalizing or disincentivizing high-carbon processes, effectively nudging the sector towards greener manufacturing practices.

Small and medium-sized steel producers stand to benefit significantly from the scheme, which aims to enhance their competitiveness and technological capabilities. Industry analysts view the policy as a strategic move to consolidate India's position as a major global steel player while ensuring that domestic producers maintain sustainable operational standards.

The new framework comes amid growing global demand for steel and India's efforts to position itself as a reliable supplier to both domestic and international markets. The government's comprehensive approach addresses capacity creation, demand support, and environmental stewardship in a single coordinated initiative.