Page 43 - CII ARTHA

OCTOBER 2025

Decarbonizing

India’s Steel Sector

T he global steel industry, responsible for producer (with 9.4 per cent market share) represents

approximately 7 to 9 per cent of global greenhouse
a significant achievement, particularly given its rapid
gas emissions, faces mounting pressure to
report strong steel volume growth of 33 per cent from
decarbonise. This imperative has catalysed the growth trajectory. India is the only major country to
emergence of green steel, produced using 2019 to 2024.
hydrogen-based Direct Reduced Iron (H2-DRI) processes
that substantially reduce carbon intensity compared to India is uniquely positioned to lead the green steel
conventional blast furnace-basic oxygen furnace transition due to its dominance in Direct Reduced Iron
(BF-BOF) methods. For India, the transition to green (DRI) production and robust steel manufacturing
steel represents not merely an environmental necessity capabilities. As the world's second-largest steel
but a strategic economic opportunity that aligns with the producer (149.6 MT in 2024) and largest DRI producer
country's existing industrial capabilities and comparative (49.6 MT in 2023, representing 37 per cent of global
advantages. production), India possesses foundational advantages
that can be leveraged for green steel leadership.

India’s unique structural advantages India's dominance in DRI production represents its
position it favourably for leadership in most significant competitive advantage for green steel
green steel production and exports transition. India's DRI-to-steel production ratio of 35.2
per cent in 2023 indicates strong industrial integration
and readiness for green steel transition. This ratio is
higher than most global competitors and provides a
The global steel industry is dominated by Asian
producers, with China accounting for 63.2 per cent of natural pathway for hydrogen-based steel production.
global production. India's position as the second-largest

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