India targets 300 MT steel capacity with 25% lower emissions intensity

India is targeting a 25% reduction in steel-sector emissions intensity while raising production capacity to about 300 million tonnes by 2030 from around 180 million tonnes, per a government roadmap reported by Reuters. The plan reshapes compliance and capital-allocation expectations for Indian steelmakers and green-infrastructure supply chains.

India is accelerating industrial decarbonisation, targeting a 25% reduction in steel-sector emissions intensity while raising production capacity to approximately 300 million tonnes by 2030 from around 180 million tonnes currently, according to a government document reported by Reuters. The roadmap focuses on reducing emissions intensity rather than absolute emissions, allowing capacity expansion to continue in a sector that contributes nearly 12% of India's total emissions. Cleaner technologies, improved energy efficiency and increased scrap-based steelmaking will support the transition, with green steel positioned as a central pillar of India's climate roadmap.

The strategy directly affects steel manufacturers, infrastructure developers and export-oriented industries. Key measures include adoption of green hydrogen, expansion of electric arc furnace routes and carbon-capture technologies, with the government expected to introduce policy incentives, green-financing frameworks and stricter efficiency norms. Major producers are likely to align given rising global pressure on supply chains to decarbonise and meet ESG standards. India's steel sector could gain a competitive advantage in serving global markets that increasingly demand low-carbon materials, though the transformation requires substantial technology, capital and supply-chain change.

Steel producers should plan capital allocation toward green hydrogen, electric arc furnace routes, carbon capture and energy-efficiency upgrades to meet the 25% emissions-intensity reduction while scaling toward 300 million tonnes by 2030. Companies should monitor forthcoming policy incentives, green-financing frameworks and stricter efficiency norms. Export-oriented producers should prepare for rising compliance expectations from global buyers demanding low-carbon materials. Investors and stakeholders should track execution across technology adoption, capital investment and supply chains, as industrial decarbonisation becomes a key determinant of long-term ESG performance.

Key figure — Capacity target: approximately 300 million tonnes by 2030 (from around 180 million tonnes)