India's Steel Sector
Scale, Emissions, and Decarbonisation Imperative
India is the world's second-largest steel producer, with an annual output exceeding 140 million tonnes. The sector contributes approximately 240 million tonnes of CO2 per year — about 12% of India's total carbon emissions — with an emission intensity of 2.55 tCO2 per tonne of crude steel, significantly above the global average of 1.85 tCO2/t. India's steel production is dominated by coal-based routes: the Blast Furnace–Basic Oxygen Furnace (BF-BOF) route and coal-based Direct Reduced Iron–Electric Arc Furnace (DRI-EAF) route together account for ~92% of output. As India's infrastructure build-out accelerates, steel demand — and associated emissions — are projected to double by 2030, making decarbonisation urgent.
- India: 2nd largest steel producer globally (after China).
- Emission intensity: 2.55 tCO2/tonne steel vs. global average of 1.85 tCO2/tonne.
- Coal-based technologies: ~92% of production in 2021.
- Government target: 300 million tonnes steel capacity by 2030.
- Green Steel Initiative: Ministry of Steel has a dedicated framework for low-carbon steel transition.
● Tracked since March 10, 2026 · last seen June 18, 2026 · updates as the daily brief publishes