Green Industrial Policy for India’s Iron and Steel Sector Transition

India’s growth will require a significant expansion of manufacturing and infrastructure, with iron and steel as critical inputs and a major source of employment. 

Despite recent growth, per capita steel consumption remains well below the global average, indicating strong future demand. India’s net-zero target for 2070 increases pressure to reduce emissions from iron and steel, one of the country’s largest-emitting sectors, even as demand rises and low-carbon technologies remain limited and costly.

This policy brief examines the policy levers needed to support low-carbon steel production in India and their implications for emissions, employment and project economics.