Key Takeaways

• NSP 2017 remains relevant but needs recalibration for decarbonization and demand stimulation.
• Eastern and southern states will drive India’s 2030 growth trajectory.
• The success of mega projects (Anakapalli, Angul, Gadchiroli) will define the sector’s future.
• Coking coal dependence and carbon compliance are India’s biggest strategic risks.
• Policy coordination and green transition are critical to achieving NSP goals.

Introduction

The National Steel Policy (NSP) 2017 was a turning point in India’s industrial policy landscape. The NSP, issued when India had a crude steel capacity of around 125 million tonnes (MT), sought to position the country as a steel economy of 300 MT by 2030-31, underpinned by raw material self-sufficiency, a lively domestic demand base, and technological advancement.

As of 2025, India is the second-largest steel producer in the world, with installed capacity close to 200 MT and production sitting at approximately 144 MT. The steel sector has made impressive progress in growth, but some progress is not consistent and is limited by regional, infrastructure, and environmental barriers.

The question of relevance — whether NSP 2017 still serves India’s policy objectives in 2025 — must therefore be addressed not in terms of redundancy, but adaptability.

Policy Vision and Performance Overview (2017–2025)

NSP 2017 has put forth both quantitative and qualitative objectives.

•  300 MT of installed raw steel capacity and 255 MT of crude steel production by 2030–31.
•  230 MT of finished steel consumption, and per-capita usage of finished steel at 158 kg.
•  A level of self-sufficiency in raw materials, such that import dependence on coking coal is reduced to below 65%.
•  Energy-efficient, low-emission technologies are increasingly adopted.

By 2025, the performance snapshot shows significant progress, yet critical shortfalls remain:

Although production and capacity have increased significantly, demand has not increased the same proportion, implying there is a lack of general correspondence between expansion and sector absorption, especially in manufacturing and infrastructure.

Regional and Project-Level Dynamics

The geographical distribution of steel capacity has changed dramatically since 2017, with eastern and southern India becoming the new industrial regions.

Odisha

Odisha continues to be the focal point of India’s steel growth, with the Jindal Steel & Power Angul complex and Tata Steel Kalinganagar (Phase II) as integrated expansion examples, combining captive iron ore and port proximity. Odisha has over 45 MT of installed capacity and aims for 70 MT installed capacity by 2030.

Andhra Pradesh

The AM/NS India Anakapalli project (7–8 MT) is located near Visakhapatnam and has coastal export options and involves the eastern corridor logistics grid. However, land acquisition and environmental clearance have delayed timelines

Maharashtra

The proposed JSW Gadchiroli Greenfield plant (25 MTA) has the potential to augment capacity in a transformative way; however, it carries significant environmental and logistical risk, exposing India's failure to industrially disperse beyond mineral-rich regions.

Chhattisgarh and Jharkhand

Public-sector initiatives like NMDC (3 MTA) have created "modest" regional capacity parity, and private-sector capacity in these regions remains modest. These states are also limited in terms of evacuation infrastructure and water resources.

Karnataka and Gujarat

Both regions have successfully transformed into stable and viable export-oriented "clusters" of flat products. Gujarat, in particular, benefits from its connectivity to the port system and subsequent downstream diversification, which directly supports NSP's stated export-oriented strategy.

Strategic Risks and Policy Bottlenecks

• Resource Security: The dependency on imported coking coal and limited scrap recycling (only 25–30% potential utilized).
• Technology Adoption: India is stepping towards hydrogen-based DRI and CCUS implementation, and it is in a nascent stage.
• Trade Exposure: CBAM compliance costs may reduce India’s export competitiveness without carbon credit mechanisms.
  

Policy Recommendations

• Fast-track Strategic Projects: Establish a national “Steel Growth Monitoring Cell” under DPIIT to oversee and expedite Anakapalli, Angul, and Gadchiroli projects.
• Enhance Raw Material Security: Expand beneficiation and slurry pipelines, incentivize scrap-based EAF routes, and accelerate commercial coal mining reforms.
• Accelerate Green Transition: Provide green hydrogen subsidies under the National Green Steel Mission, with carbon credit trading mechanisms.
• Integrate Logistics through Gati Shakti: Prioritize rail and slurry pipelines in eastern and southern belts to reduce logistics costs and emissions.
• Stimulate Demand Creation: Link steel consumption targets to infrastructure projects under PM Gati Shakti, housing schemes, and renewable energy installations.

Conclusion

India is in the middle of the realization of the NSP-2017 vision (2017) and the 2030 horizon. The core aims of the policy will remain especially urged; however, the context in which these aims take place has changed dramatically. The focus should now be on moving beyond creating capacity to prioritize quality, sustainability, and resilience. If execution is consistent with the policy framework, technological leapfrogging and demand side stimulus can provide the context for India's steel sector to achieve capacity in the range of 280–300 MT by 2030–31 - meeting the objectives.