In a significant move towards sustainable industrial development, India emerged as a global leader in 2024 by becoming the first nation to officially define "green steel." This landmark achievement saw the government introduce a robust framework for green steel production, including a stringent emissions threshold of 2.2 tonnes of CO2 per tonne of finished steel.
To further incentivize green steel production, the government launched a comprehensive "Green Steel Mission" with a budget of Rs 15,000 crore. This ambitious initiative aims to facilitate the transition to cleaner technologies by promoting public procurement policies that prioritize green steel. Notably, the government proposed that 37% of public procurement be allocated to five-star rated green steel, with an additional 30% reserved for other green steel options.
Recognizing the significant capital investment required for the transition to greener production methods (estimated at Rs 260,000-270,000 crore), the government is actively seeking support from international agencies like the World Bank.
Furthermore, to safeguard the domestic steel industry from the impact of cheap imports, particularly from China, India explored the possibility of imposing safeguard duties on steel imports, with a potential 20-25% duty for two years under consideration.
This comprehensive approach to green steel production positions India at the forefront of sustainable industrial development while simultaneously bolstering the competitiveness of its domestic steel industry.
