Archive · 29 Sep 2026
India Plans Nearly Triple Steel Capacity to 600 Million Tonnes
India wants to make much more steel over the next two decades.
A draft government plan sets a goal of 600 million tonnes of steelmaking capacity by 2047.
India currently has about 220 million tonnes of capacity.
The plan also wants steel factories to produce less carbon pollution.
It aims to lower emissions per tonne of steel from 2.54 to about 1.54 tonnes.
India will need large supplies of iron ore and coking coal to reach the goal.
The government plans to seek supplies through overseas investments, joint ventures, and new international partnerships.
India recently imported more finished steel than it exported during the April-to-August period.
Officials and industry experts also expect steel prices and production costs to rise because demand and coking coal costs are increasing.
India’s draft steel policy targets 600 million tonnes of capacity by 2047, up from 220 million tonnes in fiscal 2026.
The policy seeks to cut average carbon emissions from 2.54 to about 1.54 tonnes of carbon dioxide per tonne of crude steel by 2047.
India expects iron ore demand to reach 772 million tonnes and plans to pursue overseas assets and joint ventures for supplies.
Coking coal demand is projected at 214 million tonnes, with the government planning to diversify supplies through global outreach and overseas assets.
India imported 3.5 million tonnes of finished steel from April through August, up 29.5% year over year, with China supplying 31.8%.
- Who
- India’s Ministry of Steel and Steel Secretary Sandeep Poundrik are associated with the draft policy.
- What
- India is planning to raise steelmaking capacity to 600 million tonnes by 2047 while reducing emissions and strengthening raw-material supplies.
- When
- The policy is expected to be released for public consultation soon; the reported import figures cover April through August, and Poundrik spoke on September 29, 2026.
- Where
- The policy concerns India’s steel sector and proposes overseas assets, joint ventures, and global outreach to secure raw materials.
- Why
- To meet anticipated steel demand, improve access to iron ore and coking coal, address export and trade-barrier challenges, and reduce emissions in line with India’s 2070 net-zero goal.
- Capacity target
- 600 million tonnes of steelmaking capacity by 2047
- Current capacity
- 220 million tonnes in fiscal 2026
- Emissions target
- Reduce average intensity from 2.54 to about 1.54 tonnes of carbon dioxide per tonne of crude steel by 2047
- Projected iron ore demand
- 772 million tonnes
- Projected coking coal demand
- 214 million tonnes
- Recent finished-steel imports
- 3.5 million tonnes from April through August, up 29.5% from a year earlier
- Largest import source
- China supplied 31.8% of India’s finished-steel imports during the period
- Net-zero alignment
- The emissions target is described as being aligned with India’s goal of net-zero emissions by 2070
