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The steel sector in India is one of the major drivers of the Indian economy and contributes 2% to the country’s GDP as well as provides employment to 2.5 million people in the steel and related sectors. Today, India has an operating capacity of 161 million tons of steel. In FY23, the sector has seen a growth of 6%, which is the highest among major steel producing countries. In FY23, India’s per capita steel consumption has increased to 81 kg from 57.8 kg in 2013–14 and is expected t go up to 160 kg by 2030–31 and 220 kg by 2047. According to the Ministry of Steel, India has set a target of 300 million tons crude steel capacity by FY31 and 500 million tons by FY47.
The Government of India committed to achieve Net Zero by 2070 at the 26th session of the Conference of the Parties (COP26) to the United Nations Framework Convention on Climate Change (UNFCCC) held in Glasgow, the UK. Aligning with India’s commitment, the Ministry of Steel has also committed to decarbonise the steel sector and various focus areas have been identified in this regard. The Ministry has set a target to reduce carbon emission from steel section by 20% by 2030, 50% in the medium term by 2047 and Net Zero in the long term by 2070.
This report showcases the status of the iron and steel sector in India with respect to decarbonisation and various steps taken by multiple companies to reduce carbon emission and achieve their respective net zero target. The report also highlights the various commitments made by major steel producing countries along with key emerging technologies and their significance in making low emission or green steel in India.
