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India’s Ministry of Steel will put its draft National Steel Policy for consultation within a week

ICICIdirect Research 30 Sep 2026 DISCLAIMER

News: India’s Ministry of Steel will put its draft National Steel Policy for consultation within a week, targeting an expansion of domestic steelmaking capacity to 600 million tonnes per annum (up from ~220 MT capacity in FY26) and consumption to over 500 MT by 2047. India turned into a net finished steel importer in April–August, with 3.5 MT of imports (up 29.5% YoY), led by China at 31.8%. To drive decarbonisation and industry competitiveness, the policy proposes a ₹5,000 crore incentive scheme for small steel producers linked to carbon-emission reductions, alongside the upcoming Carbon Credit Trading Scheme notification for primary steelmakers. The steel ministry expects iron ore demand at 772 million tonnes and coking coal demand to reach 214 million tonnes.

View: We view the proposed policy as structurally positive for the domestic steel sector, as the 20-year roadmap provides greater visibility for capacity expansion, import substitution and investments across the steel value chain. The focus on securing high-grade iron ore and coking coal through domestic mining, overseas assets and JVs should reduce raw-material supply vulnerabilities and support long-term capacity expansion. Further, measures to safeguard domestic producers against rising imports, alongside greater emphasis on premium and value-added steel, should support capacity utilisation and improve the product mix. The decarbonisation roadmap should also accelerate technology upgrades and the transition towards cleaner steelmaking. Overall, the policy should benefit SAIL, Tata Steel, Jindal Steel and Jindal Stainless, while enhanced raw-material security could provide structural support to NMDC and Coal India.

Impact: Positive

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