National Steel Policy: Vision 2047

India’s steel sector

Steel has been a key driver of India's industrial and economic development, supporting infrastructure, manufacturing, transportation, urbanisation and downstream industries. India has emerged as second largest steel producer. India's crude steel production has increased from about 89 million tonne (MT) in 2014-15 to 170 MT in 2025-26, while finished steel consumption has risen from 77 MT to 164 MT. India's share of global crude steel production has also grown from 5.2% in 2014 to about 8.9% in 2025, supported by an installed capacity of 220 million tonnes per annum (MTPA).
National Steel Policy - 2017 and updates in NSP Vision 2047
The National Steel Policy – 2017 was approved by the Union Cabinet on the 3rd of May, 2017. National Steel Policy (NSP) 2017 provided a roadmap for sustained growth of the steel industry till 2030-31, while addressing the challenges of a changing global and domestic market dynamics.
The priorities of steel sector has evolved since 2017. With India’s emergence as the world’s second-largest steel producer, the sector is witnessing rapid domestic growth, alongside emerging priorities such as carbon emission reduction, capacity expansion, import substitution, adoption of digital technologies, enhanced safety, increased domestic production of value-added steel and modernization of the secondary steel industry.
To achieve Government of India’s broader vision of India becoming a developed nation by 2047, various sectors have published the roadmap towards Viksit Bharat by 2047. India’s demographic trends reinforce India's long-term growth potential. India's population is projected to increase from around 1.42 billion in 2025 to about 1.67 billion by 2047 and the urban population is expected to increase from approximately 0.54 billion to 0.84 billion during the same period. This urban transition will require substantial investments in affordable housing, commercial buildings, industrial parks, metro rail systems, airports, water supply, sanitation, power transmission and other urban infrastructure. The resulting increase in steel-intensive construction and infrastructure activities is expected to provide a strong structural foundation for sustained growth in domestic steel demand. 232849/2026/ID1

Beyond the expansion of domestic demand, the Indian steel sector is entering a period of structural transformation. The industry will need to balance the objectives of rapid capacity expansion and affordable steel availability with the imperatives of competitiveness, resource efficiency, energy security and environmental sustainability. At the same time, changing global trade dynamics, evolving technologies, supply-chain vulnerabilities and increasing competition for critical raw materials are reshaping the global steel landscape. These developments necessitate a coordinated and forward-looking approach to strengthen the resilience and competitiveness of the Indian steel industry.
The next two decades will therefore require the steel sector to move beyond capacity-led growth towards value creation, technological advancement and integration across the steel value chain. Greater emphasis will be required on technology adoption and innovation, efficient utilisation of raw materials and energy, development of high-value and specialty steel, circularity and decarbonisation, digitalisation and advanced manufacturing. Strengthening linkages with downstream industries, promoting domestic manufacturing of critical inputs and equipment and enhancing India's participation in global steel value chains will be equally important to realise the sector's long-term potential.
With the rapid expansion of the steel sector, India must also focus on indigenisation of technology and capital goods for steelmaking, while building domestic capabilities in specialty steel manufacturing to enhance global competitiveness.
The National Steel Policy-Vision 2047 has been conceived to address these changing priorities. It aims to provide a comprehensive framework to guide the long-term development of the Indian steel sector. It aims to position the industry as globally competitive, resilient and environmentally sustainable, contributing to Viksit Bharat @ 2047.
The policy covers all important aspects for steel sector and gives concrete action plan to address the challenges and explore the opportunities.
The NSP Vision 2047 envisages India’s crude steel capacity reaching 604 million tonnes by 2047, with finished steel consumption projected at 505 million tonnes. Per capita steel consumption is expected to increase from the current 116 kg to 302 kg by 2047.
It is expected that this policy will become a guiding document for Indian steel sector’s phenomenal growth in coming two decades.