Draft National Steel Policy 2025 links rapid capacity expansion with decarbonisation goals.

India Targets 25% Emissions Cut, 400 MT Steel Capacity by 2035 Under New Policy.

The government is planning to cut carbon emissions from India’s steel sector by around 25% over the next decade while more than doubling production capacity, according to a draft of the proposed National Steel Policy 2025 reviewed by Reuters. Under the policy, emissions intensity is targeted to fall to 2 tonnes of carbon dioxide per tonne of finished steel by 2035–36, from the current level of about 2.65 tonnes per tonne. The steel sector currently accounts for 10–12% of India’s total emissions and remains well above the global average. To achieve this, the policy proposes greater adoption of gas-based steelmaking, higher scrap utilisation, and incentives for continuous decarbonisation, alongside coordination with the oil ministry to secure overseas gas supplies. Infrastructure constraints remain a challenge, with limited gas pipeline connectivity. India aims to expand crude steel capacity to 400 million tonnes by 2035–36, up from about 168 million tonnes, requiring nearly ₹17 trillion in investment and generating over 3 million jobs, while supporting the country’s net-zero target for 2070.