India Plans Major Steel Capacity Expansion

The Centre is preparing a new National Steel Policy aimed at significantly expanding India’s domestic steelmaking capacity and strengthening the industry’s competitiveness. Steel Secretary Sandeep Poundrik said the draft policy will be placed in the public domain within about a week for stakeholder consultation. The policy is expected to target more than 600 million tonnes of steelmaking capacity and over 500 million tonnes of consumption by 2047, while also promoting special and value added steel production and addressing challenges related to imports.

The government is also proposing a ₹5,000 crore Viksit Bharat Ispat scheme for small steel producers, with incentives linked to production and reduction in carbon emissions. The Carbon Credit Trading Scheme for larger steel producers is expected to be notified soon. Measures to discourage cheap and substandard steel imports, including safeguard and anti-dumping duties, are also being considered. Meanwhile, DGFT Director General Luv Aggarwal said India’s steel exports rose 11% in April–June 2026-27, highlighting the importance of exports in boosting manufacturing, employment and innovation.