India’s economic growth will require a substantial expansion of its manufacturing base and infrastructure, with iron and steel playing a central role as an input to key sectors such as infrastructure, automobiles, and housing. While the sector has grown steadily in recent years, per capita steel consumption in India remains well below the global average, indicating significant growth potential. At the same time, the sector is a major source of employment and contributes meaningfully to the economy, particularly outside large urban centers.
India’s commitment to achieve net-zero emissions by 2070 adds urgency to addressing emissions from the iron and steel sector, one of the country’s largest emitters. Demand is expected to rise, yet commercially mature low-carbon technologies remain limited and costly. Against this backdrop, this policy brief assesses the policy levers needed to support low-carbon steel production in India, examining their implications for emissions reduction, employment, and project economics.