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India's steel industry, the second-largest globally, produced over 152 million tonnes of crude steel in FY25 and aims to expand capacity to 300 million tonnes by 2030 and 500 million tonnes by 2047. However, the sector must address its carbon emissions, which account for 10-12% of India's total emissions, with an average intensity of 2.54 tCO₂ per tonne of crude steel.

With plans to reduce this to 2.2 tCO₂ by 2030, total emissions could reach 561 million tCO₂ by 2030 and nearly 935 million tCO₂ by 2047. The Ministry of Steel has initiated a Low-Carbon Transition Task Force and introduced a Green Steel Taxonomy to encourage emissions reductions.

Key technologies include hydrogen-based Direct Reduced Iron and Electric Arc Furnaces. Challenges include the availability of quality scrap and reliance on coal-fired power. Policy support is crucial for aligning growth with sustainability goals.