India's draft National Steel Policy 2047 targets more than 600 million tonnes of steelmaking capacity and 500 million tonnes of consumption by 2047. The plan includes a Rs 5,000 crore incentive scheme for small steel producers tied to production and carbon emission reductions, plus a Carbon Credit Trading Scheme for larger producers expected to be notified soon. The policy replaces the 2017 version and adds focus on decarbonisation, AI, and domestic technology development. Steel Secretary Sandeep Poundrik said the numbers are conservative and that the policy will go to public consultation within a week. India's crude steel capacity stood at 220 million tonnes in FY25 and is projected to reach 294 million tonnes by FY31. The policy also addresses raw material pressure, with iron ore demand expected to exceed 700 million tonnes, and aims to boost speciality steel for autos, defence, and aerospace. For carbon market watchers, the key details are still missing: how emission baselines will be set, how credits will be verified, and whether the small producer scheme will cover upfront costs. The EU's 1.6 million tonne steel quota for India also adds uncertainty to the export picture. The draft policy is worth reading once it is released.
