India’s Iron Ore Security and the Challenge of Meeting Its 2047 Steel Vision 

India’s ambition to expand steelmaking capacity over the next two decades will depend not only on investment in steel plants, but also on a reliable supply of essential raw materials. Iron ore is central to this challenge.  

As India moves towards the draft National Steel Policy–Vision 2047, the key question is whether domestic mining can expand fast enough to support the projected growth in steel production. 

The draft policy projects iron ore requirements of approximately 772 million tonnes (MT) by 2047, compared with 299 MT in 2025. These projections indicate the scale of the supply challenge facing India’s mining and steel industries. 

India’s Iron Ore Production Has Grown, but the Required Scale Is Much Larger

Financial year	Iron ore production (MT)	Year-on-year change
FY2015–16	158.11
FY2016–17	194.58	23.10%
FY2017–18	201.42	3.50%
FY2018–19	206.49	2.50%
FY2019–20	244.08	18.20%
FY2020–21	205.04	−16.0%
FY2021–22	253.97	23.90%
FY2022–23	258.37	1.70%
FY2023–24	276.75	7.10%
FY2024–25	289.41	4.60%

 

India has significantly increased its iron ore production over the past decade. According to the Ministry of Mines, production reached approximately 276.75 MT in FY2023–24 and 289.41 MT in FY2024–25. 

This growth reflects the importance of iron ore mining to India’s steel industry. However, the increase in production remains modest compared with the longer-term expansion implied by the 2047 vision. 

The historical trend demonstrates that India can expand iron ore production, but the next phase will require sustained investment in mining, processing, transport and the development of additional resources. 

From 299 MT to 772 MT

The draft National Steel Policy–Vision 2047 projects iron ore requirements to rise from approximately 299 MT in 2025 to 772 MT by 2047. This represents an increase of 473 MT, taking the requirement to around 2.6 times its 2025 level. 

Meeting this growing requirement will demand sustained expansion of mining activity over the coming decades. New mines, expansions of existing operations, improved recovery of usable ore and investment in processing infrastructure could all contribute to increasing supply. 

The scale of the projected requirement also highlights the importance of aligning mineral development with the expansion of India’s steel industry. Timely mine development and efficient utilisation of existing resources will be essential to ensure that iron ore availability keeps pace with the sector’s long-term growth. 

Iron Ore Imports

India is a major iron ore producer, but it also imports iron ore. Reported imports were approximately 5.6 MT in FY2015–16 and 6.5 MT in FY2024–25, although imports fluctuated substantially between these years. Imports had previously reached around 15.1 MT in FY2014–15 before falling sharply in the following year. 

More recently, imports rose from approximately 5.3 MT in FY2023–24 to 6.5 MT in FY2024–25. This increase indicates that import demand can rise even when domestic production is expanding. 

However, imports do not necessarily indicate an overall shortage of iron ore in India. Steelmakers may import particular grades or qualities of ore that suit their production processes, or material that is more economical to deliver to specific plants. Domestic and imported ore can also serve different locations and procurement requirements. 

As India moves towards its 2047 steel ambitions, the key consideration will be the availability of suitable iron ore in the required quantities and at competitive prices. Domestic production, import demand and the quality of available resources will all influence the ability of the steel industry to secure reliable supplies. 

What Could Constrain Domestic Supply Growth?

Increasing iron ore supply will require more than identifying mineral resources. The ability to bring additional ore to market depends on the timing of mine development, environmental and land clearances, investment, processing requirements and transport infrastructure. 

Ore quality will also matter. Total mined tonnage is not the same as the quantity of ore that a steelmaker can use directly. Some ore requires beneficiation or other processing to meet quality specifications, while the economics of processing depend on ore characteristics, energy, water, equipment and suitable infrastructure. 

Logistics are equally important. Additional output must be transported from mining regions to steel plants, pelletising facilities and ports. Rail capacity, road access, handling facilities and, where commercially viable, slurry pipelines can influence how quickly new supply reaches users. 

These factors make coordinated investment across mining, processing and transportation essential to support the expansion of India’s iron ore supply. Improving operational efficiency and developing infrastructure alongside new mining capacity will help the industry meet rising demand more effectively.

What India Needs to Prioritise

India’s iron ore strategy should focus on four priorities. 

First, develop new mines and expand existing operations. Mine development and expansion need to be aligned with the long-term growth projected for steelmaking and iron ore requirements. 

Second, improve the effective availability of usable ore. Beneficiation and processing investment should focus on resources where technical feasibility and commercial viability support additional usable supply. 

Third, strengthen transport and mineral-handling infrastructure. Mining growth will have limited value if additional output cannot reach steelmaking centres at competitive cost. Improving rail connectivity, handling facilities and other transport links will be important for moving larger volumes efficiently. 

Fourth, encourage efficient resource utilisation. Improving recovery rates, reducing processing losses and making better use of available ore resources can help increase the quantity of usable material supplied to the steel industry. 

Production Growth Must Match the Scale of the Vision

India’s iron ore production has grown substantially, reaching approximately 289 MT in FY2024–25. The draft National Steel Policy–Vision 2047, however, projects an iron ore requirement of 772 MT by 2047. Meeting this requirement will demand sustained development of domestic resources, improved processing capabilities and expanded transport infrastructure. 

Imports remain part of the supply picture, but their presence does not automatically demonstrate that domestic ore is insufficient. The more important test is whether India can provide the right quantity and quality of iron ore, at the right location and at a competitive cost, as steel demand expands. 

Ultimately, India’s ability to support its 2047 steel vision will depend on whether iron ore mining, processing and logistics can expand in step with the projected requirement. Ensuring reliable raw-material availability will be essential to sustaining the long-term growth and competitiveness of the country’s steel industry. 

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