National Steel Policy 2047 draft targets 604 MT crude steel capacity
Why in the news
On 11 October 2026 the government released the draft National Steel Policy 2047, which sets long-term targets for capacity, demand, exports and decarbonisation of the steel sector.
Key facts
- Capacity target: 604 million tonnes per annum (MTPA) of crude steel by 2047; installed capacity today is 220 MTPA.
- Demand: finished steel demand expected to reach 505 MT by 2047.
- Per capita consumption: 302 kg targeted by 2047, from 116 kg in FY26 (world average 209 kg).
- Exports: 45 MT targeted by 2047.
- Global share: India’s share in world crude steel output rose from 5.2% (2014) to about 8.9% (2025).
- Coking coal: nearly 92% of the requirement is imported; raw materials form about 65-70% of production cost.
- Emissions: the sector contributes about 10-12% of India’s CO2 emissions; net zero by 2070.
| Indicator | 2014-15 | 2025-26 | 2047 target |
|---|---|---|---|
| Crude steel production | about 89 MT | 170 MT | – |
| Finished steel consumption/demand | 77 MT | 164 MT | 505 MT |
| Crude steel capacity | – | 220 MTPA | 604 MTPA |
About the National Steel Policy
The earlier National Steel Policy 2017 had aimed for 300 MT capacity and 160 kg per capita consumption by 2030. Steel Secretary Sandeep Poundrik said that policy needed a fresh look. The draft notes that construction and infrastructure take about 67% of steel use, and that about 2,550 secondary steel units hold nearly 47% of crude steel capacity. Emission intensity stands at 2.54 tCO2 per tonne of crude steel against a world average of 1.92.
Exam angle
- Remember the numbers 604 (capacity), 505 (demand), 302 kg (per capita) and 45 MT (exports) for 2047.
- Compare with NSP 2017: 300 MT capacity and 160 kg per capita by 2030.
- Green steel and heavy coking coal import dependence are key policy themes.