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Ahead of the Union Budget, five industry and policy organizations have called for a clear demand mandate and targeted fiscal measures for low-carbon steel procurement in public infrastructure projects in India. Public procurement accounts for 22-25% of India's steel demand, emphasizing the need for aligned procurement rules and budget provisions as the government advances green steel policies.

The groups stress that Green Public Procurement (GPP) should be the primary instrument for market creation, with procurement mandates creating predictable demand for low-carbon steel. Support from the Ministry of Finance is crucial, whether through incentives to bridge the green steel premium or GST rationalization.

They argue that fiscal interventions can ease procurement constraints and accelerate market formation, avoiding long-term subsidy dependence. The organizations, including the Confederation of Indian Industry and India Energy & Climate Center, highlight the importance of the upcoming Union Budget to align fiscal policy with a strong demand mandate for green steel.