India plans new steel policy with focus on green and speciality steel by 2035, 2047
New Delhi: India is preparing a new national steel policy with production targets for green steel, speciality steel and stainless steel for 2035 and 2047, officials said.
The revamped framework will focus on premium products and import substitution, while a separate steel scrapping policy is also under inter-ministerial consultation.
Also Read: India lacks adequate scrap supply, only 25% steel demand can be met through scrap-based production: Former Steel Secy
"The current policy is outdated," a senior official told ET, adding the National Steel Policy 2017 (NSP 2017) requires a review before its 2030-31 targets are achieved.
The updated policy is expected to lay out targets for value-added steel products and measures to reduce imports.
NSP 2017, released in May 2017, had aimed to double India's steelmaking capacity to 300 million tonnes per annum by 2030-31. The country's steelmaking capacity rose to 220 million tonnes per annum at the end of FY26, putting the industry on track to achieve the target ahead of schedule.
Domestic crude steel production rose more than 10.7% year-on-year to about 168.4 million tonnes during April 2025-March 2026, while finished steel consumption increased 7.6% to 163.7 million tonnes.
Also Read: India steel sector grows in April, crude output up 5.8%, consumption up 8.1%
Despite domestic capacity exceeding local consumption, India continued to import steel. Imports stood at 6.52 million tonnes during April 2025-March 2026, while exports were at 6.60 million tonnes. Industry executives said speciality and value-added products accounted for a large share of imports.
"The steel industry has evolved considerably since the 2017 policy was framed," the official said, adding that the focus has shifted from capacity expansion alone to premium products and life-cycle costing approaches.
The rethink also comes amid rising global overcapacity. The Organisation for Economic Co-operation and Development has projected excess global steelmaking capacity at 721 million tonnes by 2027.
The revamped framework will focus on premium products and import substitution, while a separate steel scrapping policy is also under inter-ministerial consultation.
Also Read: India lacks adequate scrap supply, only 25% steel demand can be met through scrap-based production: Former Steel Secy
"The current policy is outdated," a senior official told ET, adding the National Steel Policy 2017 (NSP 2017) requires a review before its 2030-31 targets are achieved.
The updated policy is expected to lay out targets for value-added steel products and measures to reduce imports.
NSP 2017, released in May 2017, had aimed to double India's steelmaking capacity to 300 million tonnes per annum by 2030-31. The country's steelmaking capacity rose to 220 million tonnes per annum at the end of FY26, putting the industry on track to achieve the target ahead of schedule.
Domestic crude steel production rose more than 10.7% year-on-year to about 168.4 million tonnes during April 2025-March 2026, while finished steel consumption increased 7.6% to 163.7 million tonnes.
Also Read: India steel sector grows in April, crude output up 5.8%, consumption up 8.1%
Despite domestic capacity exceeding local consumption, India continued to import steel. Imports stood at 6.52 million tonnes during April 2025-March 2026, while exports were at 6.60 million tonnes. Industry executives said speciality and value-added products accounted for a large share of imports.
"The steel industry has evolved considerably since the 2017 policy was framed," the official said, adding that the focus has shifted from capacity expansion alone to premium products and life-cycle costing approaches.
The rethink also comes amid rising global overcapacity. The Organisation for Economic Co-operation and Development has projected excess global steelmaking capacity at 721 million tonnes by 2027.
