India Plans Cleaner Steel Future with 25% Emission Cut Goal

India is gearing up to reshape its steel sector with a new National Steel Policy 2025 aimed at balancing growth with sustainability. The government plans to reduce carbon emissions from steel production by 25% while increasing the country’s total steel production capacity to 400 million tonnes (MT) by 2035–36.

At present, India produces around 168 MT of crude steel production every year, making it the second-largest producer globally. With infrastructure growth in India and construction demand rising steadily, the country now wants to more than double its output over the next decade to support economic growth.

A major highlight of the policy is its focus on cutting emission intensity. The government aims to bring steel sector emissions down from about 2.65 tonnes of COâ‚‚ per tonne of finished steel to nearly 2 tonnes by 2035–36. This is a significant step, especially since the steel industry currently contributes around 10–12% of India’s total carbon emissions.

To meet these goals, India is looking at cleaner and more efficient production methods. This includes shifting towards green steel technology, increasing the use of recycled steel scrap, and encouraging companies to adopt low-carbon solutions. The government is also working on improving gas supply infrastructure, which remains limited for many steel plants.

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The policy also takes into account global trade challenges. For instance, the EU carbon border tax is pushing countries like India to reduce emissions in export sectors. In response, India aims to produce greener steel and expand its exports to about 20 MT by 2035–36, strengthening steel exports India.

However, achieving these targets will require significant investment—estimated at around ₹17 trillion in steel sector investment. The move is expected to create over 3 million new jobs, boosting employment across the steel value chain.

India is also planning to reduce its dependence on imported coking coal by diversifying supply sources and strengthening global partnerships.

Overall, the policy reflects India’s push towards sustainable steel industry growth while staying aligned with its long-term climate goals.