India to Unveil New National Steel Policy Draft Within a Week
Steel Secretary Sandeep Poundrik announces a new National Steel Policy draft to guide India's steel sector towards the 2047 Viksit Bharat vision.
The Indian government is set to release a draft of the proposed National Steel Policy to the public within approximately one week. This new framework is designed to serve as a strategic roadmap for the country's steel industry, guiding its growth and evolution toward the Viksit Bharat goal by 2047. Steel Secretary Sandeep Poundrik announced the move on Tuesday, noting that the draft will be opened for stakeholder consultation and public comments.
Modernizing for a New Era
The decision to formulate a new policy stems from the need to replace the existing National Steel Policy of 2017. According to Poundrik, the sector has undergone massive transformations over the last decade that the previous framework did not fully anticipate. The new policy aims to address modern industrial challenges that were not central priorities in 2017.
Key areas of focus for the upcoming policy include:
- Advanced Technology: Integrating Artificial Intelligence (AI) and Machine Learning (ML) into steel production.
- Digital Transformation: Utilizing digital twins, robotics, and advanced data analytics to boost efficiency.
- Sustainability: Addressing decarbonisation and the urgent need for greener manufacturing processes.
- Capacity Management: Navigating the rapid rise in domestic capacity and consumption patterns.
Boosting Domestic Competitiveness and Small Producers
A significant portion of the new policy is dedicated to protecting and empowering domestic manufacturers. The government intends to implement measures to discourage the influx of cheap and sub-standard steel imports through safeguard and anti-dumping mechanisms.
To support the backbone of the industry, the government is proposing a dedicated scheme titled Viksit Bharat Ispat. This initiative, which could see an investment of Rs 5,000 crore, is specifically designed for small steel producers. Under this scheme, financial incentives will be directly linked to two critical metrics:
- Total production output.
- The successful reduction of carbon emissions.
The Path to Green Steel
As India expands its steelmaking capacity, the Ministry of Steel is placing a heavy emphasis on "green steel." Poundrik highlighted that reducing emissions will necessitate a shift toward better technology, improved raw materials, and a significantly higher reliance on renewable energy sources.
While larger steelmakers will face specific carbon-reduction requirements, the proposed policy also seeks to provide incentives for smaller players to adopt cleaner technologies. The Viksit Bharat Ispat scheme is expected to be presented to the competent authorities for formal approval in the near future.
Currently, India's annual crude steel capacity stands at approximately 222.7 million tonnes, as of July 2026. The new policy will provide the long-term vision required to manage this growth as the nation moves toward its 2047 targets.