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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →India’s Ministry of Steel has proposed a long-term target of 604 million tonnes (MT) of crude steel capacity by 2047. The draft also projects 531 MT of crude steel production, 505 MT of finished steel demand and per-capita steel consumption of 302 kg. These are projections in a draft policy—not current output, approved commitments or guaranteed outcomes. The Ministry is inviting suggestions through October 30, 2026.
What the 2047 targets measure
The headline figure is capacity, not the amount of steel the country is expected to make or use. The draft sets out separate measures for production, demand and exports, which should not be treated as interchangeable.
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| Measure | Draft figure for 2047 | What it means |
|---|---|---|
| Crude steel capacity | 604 MT | The proposed ability to produce crude steel, not a production forecast. |
| Crude steel production | 531 MT | The draft’s projected crude steel output. |
| Finished steel demand | 505 MT | Projected domestic demand for finished steel. |
| Per-capita steel consumption | 302 kg | Projected steel consumption per person. |
| Steel exports | 45 MT | The draft’s projected exports. |
Crude steel is an intermediate production measure; finished steel is the product more directly tied to end-use demand. The draft’s capacity figure is larger than its production projection, and its production projection is not the same measure as finished steel demand. The figures therefore describe different parts of the industry, rather than one single “steel target.”
How the draft connects growth to demand
The Ministry says India’s crude steel production rose from about 89 MT in 2014–15 to 170 MT in 2025–26, while finished steel consumption rose from 77 MT to 164 MT over the same period. These are historical figures cited in the draft; they are not results of the proposed policy.
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The draft projects per-capita consumption rising from 116 kg in FY2025–26 to 302 kg by 2047. It identifies construction and infrastructure as the largest consuming areas, together accounting for around 67% of steel consumption, and points to housing, transport, manufacturing, renewable energy, clean mobility and digital infrastructure as sources of future demand.
Why raw materials and transport matter
Steel expansion depends on inputs as well as furnaces. The draft estimates raw materials account for around 65–70% of steelmaking costs and says coking coal import dependence is nearly 92%. For 2047, it projects requirements of 772 MT of iron ore and demand of 236 MT of coking coal.
Those figures help explain why the proposal emphasizes input security: the cost and availability of raw materials can affect steelmakers’ operating economics and the feasibility of expanding output. The draft proposes several approaches, including more domestic mining, expansion of coal washeries, overseas asset acquisition, long-term supply arrangements and optimisation of coal blends. These are proposed measures, not evidence that new supply has already been secured.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsMoving bulky materials is another part of the equation. Business Standard reports that the draft proposes increasing iron-ore slurry pipeline capacity from around 18 million tonnes per annum (MTPA) to more than 299 MTPA by 2047. The report also notes potential constraints involving clearances, land, local opposition, water and environmental considerations. Pipeline capacity is a proposed logistics measure, not an additional steel-output target.
What the draft proposes for emissions
The draft sets an average emissions-intensity objective of 1.54 tonnes of CO2 per tonne of crude steel by 2047, compared with a current average intensity of 2.54 tonnes of CO2 per tonne of crude steel stated in the document. It also points toward net zero by 2070. The intensity figures use crude steel as the denominator; they are not totals for India’s steel-sector emissions.
The proposed transition is phased. Measures include improving efficiency, using renewable power and increasing scrap use, with advanced technologies, hydrogen-based direct reduced iron and carbon capture, utilisation and storage (CCUS) also identified. The draft describes decarbonisation as a policy pillar, but it does not make the target a report of emissions already reduced.
How the proposal addresses smaller and secondary producers
The draft says about 2,550 secondary-sector units accounted for nearly 47% of crude steel production capacity in FY2025–26. It proposes support for this part of the industry through raw-material access, technology upgrades, skills and safety measures, as well as downstream clusters. That matters to the overall ambition because capacity growth would involve more than large integrated steel plants.
Other proposed changes beyond production
The draft’s implementation agenda includes steps intended to support product quality, trade and the industry’s operating capabilities:
- Quality and trade: proposed quality standards, conformity assessment, import monitoring and action against substandard steel, alongside stronger export capability.
- Scrap and recycling: improved collection and recycling to increase scrap use as part of the proposed transition.
- Digitalisation and data: digital infrastructure, a national steel data platform and AI-supported import monitoring.
- Safety, skills and research: a proposed Steel Industry Safety Council and Directorate, skills assessments, training-centre upgrades, and research and innovation measures.
- International cooperation: cooperation with other countries as part of the policy’s broader industry-development agenda.
These items are policy proposals; their inclusion in the draft does not establish that a particular standard, platform or institution is already operating.
What happens next—and what is not settled
The Ministry’s draft-policy page invites suggestions until October 30, 2026. Consultation means the text may change. The available Ministry materials do not establish a final policy text, an approval date or whether the proposed targets and measures will be implemented as written.
For readers following the economy or household finances, the draft is best understood as a long-range industrial plan rather than a forecast of near-term prices, jobs or investment returns. It describes the scale of capacity and demand the government wants to enable, while flagging inputs, infrastructure, emissions, quality and workforce capability as implementation challenges. It does not by itself establish how those ambitions will affect steel prices, inflation, public spending or individual companies.
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