India’s steel sector is on the cusp of a transformational leap. The proposed National Steel Policy 2025 sets an ambitious target of scaling crude steel capacity to 400 million tonnes by 2035–36, nearly tripling the current capacity of around 168 million tonnes. The plan signals that India’s industrial growth story is entering a new chapter, one where volume and sustainability go hand in hand.
Achieving this target will require an estimated investment of approximately $183 billion, capital that is expected to energise the entire steel value chain, from mining and transportation to processing and exports. The scale of this expansion reflects the pace at which India’s infrastructure development, urban growth and manufacturing base are being strengthened.
The steel sector already punches well above its weight in economic terms, contributing around 2.5 per cent to GDP and supporting nearly 2.8 million jobs. With expansion underway, employment in the sector is projected to grow significantly, potentially adding over 3 million additional jobs by 2035–36 reinforcing steel’s role as a socio-economic backbone for the country.
Alongside capacity growth, the policy charts a clear path toward emissions reduction. The target is to bring down emissions intensity to 2 metric tonnes of COâ‚‚ per tonne of finished steel by 2035–36, down from the current level of around 2.65 tonnes. This is a critical shift given that steel production accounts for roughly 10–12 per cent of India’s total carbon emissions. The reduction roadmap aligns directly with India’s broader commitment to achieving net-zero emissions by 2070.
To meet these environmental goals, cleaner production methods are being actively promoted. Gas-based steelmaking is gaining traction as a lower-emission alternative to coal-heavy processes, while scrap-based production is emerging as a cornerstone of circular economy practices within the industry. Recycling and reuse are increasingly central to how Indian steelmakers are planning their future operations.
Underpinning all of this is a push to strengthen supporting infrastructure, expanding gas pipeline networks, ensuring reliable energy availability and building out industrial systems capable of sustaining cleaner and more efficient production at scale.
India’s steel ambitions are no longer just about making more, they are about making better, cleaner and smarter, setting a template for sustainable heavy industry growth in the developing world.
