India plans to increase steel production capacity to 400 million tonnes

India plans to increase its steel production capacity to 400 million tonnes and expand steel exports to over 20 million tonnes by the 2035/2036 fiscal year. JIS G 3313 SEPH370 steel strip, This goal is outlined in the proposed National Steel Policy 2025.

According to an internal government draft from March, achieving this target requires a capital investment of approximately ₹17 trillion (about US$183.4 billion). The capacity expansion is expected to further boost employment; the Indian steel industry currently employs around 2.8 million people.

Regarding raw materials, the policy proposes reducing reliance on imported coking coal from the current level of approximately 90% to 80%. On the environmental front, the goal is to lower CO2 emissions per tonne of rolled steel to 2 tonnes by 2035/2036; the current figure is about 2.65 tonnes, which is roughly 32% higher than the global average. JIS G 3313 SEPH370 steel strip, The steel industry currently accounts for 10%–12% of India's total carbon emissions.

To meet emission reduction targets, policies emphasize promoting natural gas-based steelmaking processes and increasing the share of scrap steel usage, while leveraging incentive mechanisms to drive ongoing emissions cuts. However, infrastructure bottlenecks persist; only about 21% of blast furnace capacity and 5% of direct reduced iron (DRI) capacity are currently connected to natural gas pipeline networks.

Regarding industry performance, India's crude steel output for the 2025/26 fiscal year is projected to reach 168.4 million tonnes, a year-on-year increase of 10.7%. Steel exports are expected to rise by 35.9% to 6.6 million tonnes, while imports are forecast to fall by 31.7%. JIS G 3313 SEPH370 steel strip, Domestic steel consumption is expected to hit 164 million tonnes—up 8% year-on-year and driven largely by infrastructure demand—against a national steel production capacity of approximately 220 million tonnes.

Additionally, driven by a combination of insufficient high-grade ore supplies and rising demand (particularly from JSW Steel), India's iron ore imports are projected to climb to a seven-year high in the 2025/26 fiscal year.