By 2047, India wants to produce 500 million metric tonnes (MMT) of steel annually, which is a huge target. This goal signifies a threefold increase from the existing output of roughly 160–165 MMT and is crucial for the country's industrial aspirations.
The Goal: Increasing Production While Maintaining Sustainability
The plan isn’t just about ramping up numbers, it’s about doing so responsibly:
- Emission reductions: India aims to lower emissions intensity to 2.25 tonnes of CO₂ per tonne of crude steel (T/tcs) by FY 2029, down from around 2.5 T/tcs, with further improvements by 2047.
- Enhanced scrap usage: The share of steel produced from recycled scrap is projected to rise from about 30–35% today to 50% by 2047, supporting the nation's green-steel initiative and reducing environmental footprint.
Strategic Enablers: What Will Drive the Growth?
Several strategic steps are essential to meet the lofty target:
- Raw material security: Odisha, rich in iron ore, is spearheading efforts to expand mining infrastructure and ease supply bottlenecks, with plans to auction around 30 iron ore blocks this year.
- Massive investment flow: The government estimates a staggering ₹10 lakh crore investment will be needed to hit the 300 MMT by 2030 milestone, with even more capital required to scale up to 500 MMT by 2047.
- Digital and technological innovation: Plans include increasing investments in process automation and digital tools from US$1–1.2 billion (2024) to $2.3–2.7 billion by 2030, bringing efficiency and environmental compliance to the fore.
The Roadmap to 2047
| Timeline | Production Target | Emission Intensity Target (T/tcs) | Scrap Usage Share |
|---|---|---|---|
| Now (~2025) | ~160–165 MMT | ~2.5 | 30–35% |
| FY 2029 | — | 2.25 | — |
| FY 2030 | 300 MMT | — | — |
| FY 2047 | 500 MMT | Further reductions (below 2.25) | 50% |
Environmental and Global Implications
India’s steel expansion is critical for its economic and infrastructural development. However, reliance on coal-intensive technologies could pose environmental risks. Steel production already accounts for up to 12% of India’s total emissions, and unchecked growth could double that share.
The government's decarbonization strategy emphasises:
- Green steel classifications, with top-tier steel having emissions below 1.6 T/tcs and general green steel below 2.2 T/tcs.
- A mandate that government projects use green-rated steel starting from 2027–28, signalling policy alignment with sustainable industry growth.
Conclusion
India's goal to produce 500 million tons of steel by 2047 is a declaration of will for the future of the country, not just an industrial goal. By embracing cleaner technology, increasing recycling, and promoting digital transformation, it strikes a balance between ambition and environmental responsibility. Bold investments, efficient supply chains, and legislative frameworks that encourage the production of greener steel are all necessary for success.
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