India targets 604 million tonnes steel capacity by 2047 under new policy

India's steel sector is poised for significant expansion under the government's new policy framework, which outlines a roadmap to increase crude steel capacity to 604 million tonnes by 2047. The draft National Steel Policy 2047 projects finished steel demand will reach 505 million tonnes by the target year, while per capita consumption is expected to climb to 302 kg and steel exports to expand to 45 million tonnes.

Addressing a critical vulnerability in India's steelmaking ecosystem, the policy prioritises reducing the country's heavy reliance on imported coking coal, of which India imports nearly 92 per cent of its requirements. Raw materials account for approximately 65-70 per cent of steelmaking costs, making supply security crucial for industry competitiveness. While India maintains substantial self-sufficiency in iron ore, the policy seeks to strengthen domestic coal availability through expanded mining operations, washery capacity increases, strategic asset acquisitions, long-term supply agreements, and artificial intelligence-driven optimisation of coal blending techniques.

Beyond coal, the policy framework also emphasises ensuring stable supplies of other critical materials including manganese and limestone to support long-term resource sustainability. The secondary steel sector, comprising around 2,550 units and accounting for nearly 47 per cent of crude steel production capacity, will receive focused attention under the new policy framework to enhance its contribution to India's steel production ecosystem.