Indian steel industry must accelerate decarbonisation, diversify exports amid shifting global trade landscape: Govt Official
New Delhi, July 23
The Indian steel industry needs to speed up decarbonisation, strengthen technology and research and development, and diversify export markets to remain globally competitive amid changing global trade conditions, including carbon border measures and tariff actions, Ashwini Kumar, Economic Advisor, Ministry of Steel, said on Thursday.
Addressing Industry body ASSOCHAM's India Steel Conclave 2026, Kumar said the sector should focus on six key priorities--accelerating decarbonisation, strengthening carbon measurement and reporting under the Carbon Credit Trading System, boosting technology and R&D, securing long-term availability of critical raw materials, diversifying export markets and embracing digital transformation through artificial intelligence (AI), machine learning and the Internet of Things (IoT).
Highlighting the industry's current position, Kumar said India's installed crude steel production capacity stands at around 220 million tonnes (MT), while crude steel production reached 168.4 MT and finished steel production was around 162 MT in FY26 against finished steel consumption of 163.7 MT.
He said rising domestic demand, driven by infrastructure investment, urbanisation and consumption from sectors such as automobiles and white goods, provides India with an advantage over several major steel-producing countries facing weaker domestic demand. Referring to evolving global trade regulations, Kumar said carbon border measures would increasingly influence market access for steel exporters.
"CBAM essentially means that market access in high-value destinations will increasingly depend not only on the quality and price of the steel, but also on the carbon intensity of the production process," he said.
He added, "I would like to look at it with a positive lens -- an opportunity to modernise India's steel industry, improve technology and production processes, significantly reduce emissions and, at the same time, strengthen its long-term global competitiveness."
Kumar expressed confidence that with policy support, continuous innovation, investment in technology and close collaboration between the government and industry, the Indian steel sector would emerge stronger and more globally competitive while supporting the country's long-term manufacturing ambitions.
— ANI
Reader Comments
CBAM is just another way for West to protect their industries while preaching about climate. India should push back at WTO instead of meekly following their rules. That said, reducing carbon is good for our own air quality. Jamshedpur, Rourkela, Bhilai - these cities need cleaner air first, not just for exports.
Interesting to see India focusing on decarbonisation. As someone who works in global trade, I can tell you CBAM is real and coming. Indian steel has huge potential but needs investment. The infrastructure push in India is a massive advantage over China where construction is slowing. But AI in steelmaking? Seems a stretch for now.
Good points about diversifying exports. We're too dependent on one or two markets. But the real challenge is raw material security - iron ore and coking coal. And please, no more import duties that hurt small manufacturers. Let the industry stand on its own feet without government crutches. Competition will force innovation.
I'm an economist and this is exactly the right approach. CBAM will reshape global steel trade. India should see it as an opportunity, not a threat. The EU won't back down. But I worry about the timeline - decarbonising steel is capital-intensive and 2030 is not far away. Need massive private investment quickly.
All this talk about exports, but what about our own infrastructure? We need steel for bridges, railways, housing. If we focus too much on exporting low-carbon steel to Europe, who will build our own roads? Also, the government must ensure small steel players get support too,
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