India is increasingly positioning itself as a globally significant steel producer and growth driver, particularly through its ambitious economic policies under Prime Minister Narendra Modi, aimed at transforming the country into a fully developed nation by 2047. A central element of this vision is the steel industry, which has been growing steadily for years and currently contributes approximately 2% to the gross domestic product. The increasing demand for steel in infrastructure, housing, and automotive production continues to drive this growth. At the same time, the industry and the country face a significant challenge: reducing CO₂ emissions to meet long-term climate goals. The steel industry currently accounts for 10-12% of national CO₂ emissions, making it a target for extensive decarbonization measures.
India has already made progress in expanding renewable energy, but to achieve the ambitious net-zero goal by 2070, the industrial sector, particularly steel production, must become less carbon-intensive. The government has developed a clear decarbonization strategy that includes innovative technologies, renewable energy utilization, and increased use of recycled materials. A recently published roadmap by the Indian government outlines specific measures for emissions reduction in the steel sector in a 14-point plan. Specifically, coal-based direct reduced iron (DRI) production is to be converted to gas-based processes to facilitate a long-term transition to green hydrogen. The increased use of biochar derived from renewable plants is also considered a promising alternative to coal and coke.
However, given India's heavy reliance on coal, there is a particular focus on technologies for CO₂ reduction directly at the blast furnace, as well as on measures for carbon capture, storage (CCS), and utilization (CCU). From a realistic perspective, the use of hydrogen as a coal substitute will play only a limited role in the long term, making blast furnace reduction technologies indispensable.
Major Indian steel producers such as Tata Steel, JSW Steel, and Jindal Steel & Power are already implementing a variety of emission reduction measures. Tata Steel, for example, is actively developing and utilizing hydrogen-based production technologies and testing the use of hydrogen as a coal substitute. JSW Steel aims to drastically reduce its CO₂ emissions by 2030, focusing on renewable energy and scrap recycling. The company plans to significantly expand its domestic production capacity and increase the use of green technologies. Jindal Steel & Power is also engaged in carbon capture and is working on integrating CO₂ circular economy concepts into its production processes.
In addition to established companies, the industrial conglomerate Adani Group is investing in the future of green steel, planning the construction of an integrated steel plant powered by renewable energy and green hydrogen. These comprehensive initiatives demonstrate India's determination to modernize the steel sector and make it more climate-friendly. Despite the challenges posed by a strong dependence on coal, the Indian steel industry is showcasing innovation and partnerships with international companies, highlighting its commitment to paving the way for a more sustainable future.
