India plans to reach a steel production capacity of 400 million tons by the 2035/2036 fiscal year

The country also aims to more than double its exports of steel products

India aims to expand its steel production capacity to 400 million tons by the 2035/2036 fiscal year. This is outlined in the proposed National Steel Policy 2025, according to Reuters.

According to a draft government memo from March, which the agency reviewed, India will need capital investments of about 17 trillion rupees ($183.41 billion) to achieve this goal. The expansion of capacity is expected to lead to an increase in jobs in the steel sector, which currently employs 2.8 million people.

The country also aims to more than double exports to 20 million tons. Additionally, the new policy for the steel sector calls for reducing dependence on imported coking coal to 80% by the 2035/2036 fiscal year, down from approximately 90% currently.

According to the document, India aims to reduce steel mill emissions to 2 tons of carbon dioxide per ton of rolled steel by the 2035/2036 fiscal year. Currently, this figure stands at about 2.65 tons of CO2 per ton, which is approximately 32% higher than the global average. Steel mills account for 10-12% of the country’s total emissions.

The proposal calls for promoting gas-based steel production, increasing the use of scrap, and providing incentives for continuous emission reductions. The document notes that only 21% of blast furnace capacity and 5% of DRI or sponge iron production capacity have access to gas pipeline infrastructure.

According to India’s Ministry of Steel, the country’s steel production in the 2025/2026 fiscal year (ended March 31) is estimated at 168.4 million tons (+10.7% year-on-year), reports SteelOrbis. During this period, the country increased rolled steel exports by 35.9% – to 6.6 million tons, while imports fell by 31.7% year-on-year (actual tonnage not provided).

Domestic steel consumption in the country reached 164 million tons (+8% y/y) in the 2025/2026 fiscal year, driven by demand from the infrastructure sector. Total domestic steel production capacity stood at approximately 220 million tons.

It is worth noting that iron ore imports to India are likely to rise to a seven-year high in the 2025/2026 fiscal year due to a shortage of high-quality raw materials domestically and demand from JSW Steel.