India’s steel policy 2025: boosting domestic manufacturing, reducing Chinese imports

DBT Bureau

Pune, 3 August 2025

The PM Gati Shakti and National Infrastructure Pipeline envisage an integrated planning and coordinated execution of infrastructure projects and provide high quality infrastructure in the country. Steel is a deregulated sector and the government acts as a facilitator for creating a conducive policy environment for the development of steel sector. Decisions regarding setting up of a steel plant is taken by industry based on techno-commercial considerations including market demand, raw material availability, logistics requirement etc. No steel production clusters have been proposed or established. For the development of steel sector, Government has taken measures which include the following:-

1. Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for promoting ‘Made in India’ steel for Government procurement.
2. Launch of the Production Linked Incentive (PLI) Scheme for Specialty Steel to promote the manufacturing of ‘Specialty Steel’ within the country and reduce imports by attracting capital investments.
3. Thrust in the Union Budget to infrastructure expansion which has contributed to increasing steel consumption.
4. Calibration in Basic Customs Duty on raw materials such as Ferro-Nickel and ferrous scrap imports to reduce input costs.
5. Revamping Steel Import Monitoring System (SIMS) for monitoring of imports to provide granular details on imports to the domestic steel industry.

The current status of adoption and promotion of green steel technologies and incentives available to assist the industry in transitioning from carbon-intensive methods are as follows:-

1. Ministry of Steel has released the Taxonomy for Green Steel to provide standards for defining and categorizing the low emission steel.
2. Ministry of Steel has released a report titled “Greening the Steel Sector in India: Roadmap and Action Plan” which provides the future roadmap for green steel and sustainability, towards net-zero target by 2070.
3. Ministry of Steel has been allocated Rs.455 crore for implementation of pilot projects for use of green hydrogen in steel sector till FY 2029-30 under National Green Hydrogen Mission. Ministry of Steel has awarded five pilot projects for implementation of pilot projects for use of hydrogen in steel sector under National Green Hydrogen Mission launched by Ministry of New & Renewable Energy.

4. National Solar Mission launched by Ministry of New and Renewable Energy in January, 2010, promotes the use of solar energy.
5. The Carbon Credit Trading Scheme (CCTS) has been notified by Ministry of Power on 28^th June, 2023, which provides an overall framework for the functioning of the Indian Carbon Market.

This information was given by the Minister of State for Steel and Heavy Industries and Steel, Bhupathiraju Srinivasa Varma in a written reply in the Rajya Sabha.