India’s Green Steel Demand to Reach 4.5 Million Tonnes by 2030

India’s Green Steel Demand to Reach 4.5 Million Tonnes by 2030

India is gearing up for a significant shift in its steel industry as demand for green steel is projected to reach 4.49 million tonnes by 2030. This momentum is largely driven by key sectors such as construction, infrastructure, and automotive, which are prioritizing sustainable materials to meet climate goals.

Long-Term Growth Outlook

The potential for green steel goes far beyond 2030. According to a new EY-Parthenon report, India’s demand could climb to 73.44 million tonnes by 2039–2040, underscoring a massive opportunity for green transformation within the sector.

Green Hydrogen: A Key Enabler

To meet this growing demand, the report identifies green hydrogen-based technologies—especially direct injection methods—as critical. These solutions could eventually reduce production costs as hydrogen becomes cheaper and carbon pricing policies are implemented.

Early Adoption is Essential

EY-Parthenon advises end-use industries to begin sourcing green steel 10 years ahead of their zero-emissions targets, even if it means accepting a 3.7–5.2% cost increase. The rationale: early investment ensures a smoother, more effective transition to sustainable operations.

Certification Momentum

India’s push toward green steel is already gaining traction. Thirty-nine domestic steelmakers have applied for green certification, a clear sign that the industry is moving toward low-carbon production standards.