India’s Draft National Steel Policy 2047: From More Capacity to More Capability

01Capacity Expansion and Domestic Demand

India will require substantial steel supplies to support infrastructure, construction, automobiles, defence, railways, energy and manufacturing. Increasing capacity can help the industry respond to growing domestic requirements and emerging export opportunities.

However, long-term competitiveness will depend on more than production volumes. Manufacturers will also need to deliver the right grades, consistent quality and specialised products required by increasingly demanding industrial applications.

02Specialty and Value-Added Steel

A stronger focus on specialty and value-added steel can help India address the requirements of high-performance industries and reduce reliance on imported grades.

Important application areas include:

Developing these capabilities can create opportunities for advanced manufacturing, product innovation and deeper integration with domestic and global industrial supply chains.

03Technology, Automation and Productivity

Technology adoption will be an important lever for improving the performance of steel plants. Artificial intelligence, automation, data analytics and advanced process control can support better decision-making across production and operations.

Potential benefits include improved product quality, reduced process variation, predictive maintenance, lower energy consumption and better cost control. Translating these technologies into measurable operational improvements will be essential for manufacturers.

04Decarbonisation and Sustainable Steelmaking

Reducing the carbon intensity of steel production is becoming an increasingly important industry priority. Energy efficiency, greater scrap utilisation, renewable electricity, cleaner fuels and hydrogen-based technologies may contribute to lower-emission production pathways.

Carbon capture may also have a role where technically and economically feasible. The appropriate approach will vary depending on production routes, plant configuration, energy availability and investment capacity.

The proposed ₹5,000 crore support scheme for small steel producers, as outlined in the supplied policy summary, also highlights the need to improve efficiency and reduce emissions in the secondary steel sector.

05Raw-Material Security and Domestic Capabilities

Higher steel production will require reliable, competitive access to iron ore, coking coal, scrap and other critical inputs. Supply disruptions, price volatility and import dependence can affect manufacturing costs and operational resilience.

Strengthening raw-material planning, supply chains, domestic technical capabilities and resource efficiency will be important for the sector’s long-term growth. Greater resilience can help steelmakers manage market uncertainty while supporting India’s broader manufacturing ambitions.