Indian Steel Industry Must Accelerate Decarbonisation, Technology Adoption to Stay Globally Competitive: Steel Ministry

India’s steel industry needs to move faster on decarbonisation, technology adoption and research to maintain its position in an increasingly competitive global market, according to Ashwini Kumar, Economic Advisor at the Ministry of Steel.

Speaking at the ASSOCHAM India Steel Conclave 2026, Kumar said the industry is entering a new phase where sustainability, innovation and digital transformation will play a greater role in determining global competitiveness. He noted that evolving international trade policies, including carbon border regulations and tariff measures, are changing how steel-producing nations compete in export markets.

One of the key priorities for the sector, he said, is reducing the carbon intensity of steel production. As countries introduce carbon-based trade measures, access to premium international markets will increasingly depend not only on product quality and pricing but also on the environmental footprint of manufacturing.

Kumar also highlighted the importance of strengthening research and development, improving technology adoption and ensuring the long-term availability of critical raw materials. He urged the industry to expand its export destinations and embrace digital technologies such as artificial intelligence, machine learning and the Internet of Things to improve efficiency and productivity.

India’s steel sector continues to benefit from strong domestic demand driven by infrastructure development, urbanisation and growth in industries such as automobiles and consumer durables. According to the Ministry of Steel, the country’s installed crude steel production capacity has reached around 220 million tonnes. During FY26, crude steel production stood at 168.4 million tonnes, while finished steel production reached around 162 million tonnes against domestic consumption of 163.7 million tonnes.

Kumar said these favourable domestic fundamentals provide India with an advantage over several major steel-producing nations that are experiencing slower demand growth. However, he emphasised that sustained investments in cleaner production technologies, innovation and close collaboration between the government and industry will be essential to secure India’s long-term leadership in the global steel sector.