India’s Steel Sector: A New Era
India’s steel industry is stepping into a transformative phase. Prime Minister Narendra Modi recently highlighted Union Minister H.D. Kumaraswamy’s vision of how Carbon Capture, Utilization, and Storage (CCUS) will drive the next steel revolution. This isn’t just about producing more steel—it’s about growing sustainably, boosting the economy, and leading globally.
Currently, India is the world’s second-largest steel producer, generating around 152 million tonnes of crude steel in FY 2024–25. But traditional steelmaking is energy-intensive, contributing nearly 10–12% of the country’s greenhouse gas emissions. As India aims for Net Zero by 2070, decarbonizing the steel sector is crucial.
CCUS: The Game-Changer
CCUS technology captures carbon dioxide from steel production before it enters the atmosphere, making it possible to cut emissions without halting operations. For India, where many steel plants will remain active for decades, this is a practical and transformative solution.
Key initiatives supporting this shift include:
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Green Hydrogen Pilots: Investment under the National Green Hydrogen Mission to explore cleaner steelmaking methods.
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Carbon Budget Support: Government funding to scale CCUS across major industries, including steel.
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Green Steel Ratings: Emission benchmarks that classify low-carbon steel, driving demand for eco-friendly products.
By combining these measures, India is not just reducing emissions—it is positioning its steel industry for the future.
Economic Impact: Growth Meets Sustainability
India’s steel sector plans to expand capacity to 300 million tonnes by 2030–31 and 500 million tonnes by 2047. This growth, powered by CCUS, promises significant economic benefits:
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Global Competitiveness: Low-carbon steel meets international climate standards, boosting exports.
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Job Creation: New roles in carbon management, technology, and innovation.
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Industrial Innovation: Encourages cleaner technologies and new ecosystems around carbon utilization.
The steel revolution is not only an environmental necessity—it’s an economic opportunity, helping India strengthen its position in global markets.
A Model for Sustainable Industry
Kumaraswamy emphasizes that India’s steel ambitions are closely linked to climate goals. By adopting CCUS and exploring green hydrogen, the industry can grow responsibly, balancing output with environmental responsibility.
Steel isn’t just a commodity—it powers infrastructure, manufacturing, and transportation. A cleaner, more efficient steel sector ensures India’s long-term industrial strength, while creating a blueprint for sustainable growth worldwide.