India targets 400 MT steel capacity by 2035–36 under new policy

India’s steel sector is set for major expansion under the proposed National Steel Policy 2025, targeting 400 million tonnes capacity by 2035–36 while shifting toward sustainability. The plan also emphasises emission reduction, green technologies, and circular economy practices

New Delhi: India’s steel sector is now entering a new phase where growth is no longer measured solely in volume, but also in sustainability, reflecting a deeper evolution in industrial priorities, according to an article in the Kuwaiti media.

The country’s proposed National Steel Policy 2025 targets an increase in crude steel capacity to 400 million tons by 2035-36, up from around 168 million tons currently, which firmly outlines the ambitious expansion plans ahead, the report in The Times Kuwait said. This reflects the rapid pace at which the infrastructure development, urban growth and manufacturing base are being strengthened, it added.

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Meeting these targets will require massive investments, estimated at approximately $183.41 billion. Such capital inflows are expected to energise the entire value chain, from mining and transportation to processing and exports, driving widespread industrial momentum, the article pointed out.

It also highlighted that the steel industry already contributes about 2.5 per cent to GDP and supports nearly 2.8 million jobs. With expansion plans in motion, employment is projected to grow significantly, potentially creating over 3 million additional jobs by 2035-36 and reinforcing the sector’s socio-economic importance.

Parallel to this growth, a structured path toward reducing emissions is being implemented. The policy aims to bring down emissions intensity to 2 metric tons of carbon dioxide per ton of finished steel by 2035-36, compared to the current level of around 2.65 tons, the article observes.

It underscores that this transition is crucial, given that steel production accounts for roughly 10 to 12 per cent of the country’s total carbon emissions. Reducing this footprint aligns with India’s broader commitment to achieving net-zero emissions by 2070.

To meet these environmental goals, cleaner production methods are gaining traction. Gas-based steelmaking is being promoted as a viable alternative to coal-heavy processes, offering a pathway to significantly lower emissions.

At the same time, the industry is increasingly embracing scrap-based production, signalling a shift towards circular economy principles. Recycling and reuse are becoming central strategies, helping to conserve raw materials while reducing environmental impact.

Technology and infrastructure development will play a decisive role in this transition. Expanding gas pipeline networks, ensuring energy availability and strengthening industrial systems are essential to support cleaner and more efficient steel production across the country, the article added.