The government of India introduced a draft policy known as the National Steel Policy Vision 2047, which is currently undergoing a period of public consultation until October 30, 2026. This comprehensive roadmap aims to scale up national crude steel capacity significantly while reshaping how domestic investors approach international markets.

Expanding Steel Capacity and Production Targets

The central ambition of the draft policy is to expand crude steel capacity from an installed baseline of approximately 220 million tonnes per annum to 604 million tonnes by 2047. Actual crude steel production is projected to reach 531 million tonnes by 2047, climbing up from 170 million tonnes in 2025-26 and 89 million tonnes in 2014-15. Finished steel consumption is anticipated to scale alongside this production.

Key metrics and targets outlined in the policy include:

Finished steel consumption projected to reach 505 million tonnes by 2047, up from 164 million tonnes in 2025-26.

Per-capita steel consumption targeted to grow from about 116 kg to 302 kg by 2047.

Raw material demand estimated at 772 million tonnes of iron ore and 236 million tonnes of coking coal by 2047.

Carbon-emission intensity aimed to drop from 2.54 tonnes of CO2 per tonne of crude steel down to 1.54 tonnes by 2047.

Navigating International Allocations in Domestic Mutual Funds

On the financial front, Indian equity mutual funds are increasingly utilized by investors to gain global exposure without opening overseas brokerage accounts. Data from Value Research based on August 2026 disclosures highlights several domestic schemes maintaining substantial portions of their portfolios in foreign stocks.

Top domestic schemes by overseas allocation percentages include:

Edelweiss Technology Fund leading with an international allocation of 24.38 per cent and a one-year return of 4.25 per cent.

Franklin India Technology Fund holding 20.03 per cent with a negative return of 12.19 per cent.

Kotak Pioneer Fund maintaining 16.81 per cent allocation alongside a 7.56 per cent return.

Parag Parikh Flexi Cap Fund holding an 11.06 per cent allocation, representing the largest absolute value of international assets at ₹16,300 crore.

While geographic diversification provides exposure to global tech giants and international economic trends, investors must account for critical factors. Currency fluctuations can directly impact the returns of domestic mutual fund schemes with overseas allocations, demonstrating that international exposure does not inherently guarantee reduced risk.