India‘s new steel policy plans 600-million metric tons of steelmaking capacity by 2047 and is a roadmap for the next two decades, the country’s steel secretary said on Tuesday, adding that it will be released to the public domain soon.
The policy, a draft document of which was reviewed by Reuters, also lays out plans to cut sector emissions and shore up access to iron ore and coking coal — key raw materials — to meet anticipated demand.
The federal Ministry of Steel did not immediately respond to a Reuters email seeking comments.
India was a net importer of finished steel in April-August, shipping in 3.5-million tons of the alloy, up 29.5% from a year ago. China accounted for 31.8% of this, making it the top exporter of finished steel to India in the period.
India‘s steelmaking capacity stood at 220-million tons as of fiscal 2026.
Raw material availability and exports are major challenges for the steel sector, particularly as countries raise trade barriers, the country’s steel secretary SandeepPoundrik told reporters on the sidelines of an event.
Indian steel prices are expected to rise further in the coming weeks as a post-monsoon pickup in infrastructure and automotive demand tightens the market while higher coking coal costs lift production costs of mills, executives and analysts told Reuters.
POLICY PLANS
The policy aims to cut the sector’s average carbon emission intensity to around 1.54 tons of carbon dioxide per ton of crude steel by 2047 from the current 2.54 tons, in line with India‘s net zero emission goal for 2070, according to the draft document.
The steel ministry expects iron oredemand at 772-million tons and plans to secure access to high-grade reserves by pursuing foreign assets and joint ventures, the document said.
The ministry also expects coking coal demand to reach 214-million tons, the document said, with the government planning to diversify its sourcing via “strategic global outreach” and acquire overseas assets