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India’s green steel demand to soar to 179 mt by FY50: Report

 India’s demand for green steel is set for exponential growth, reaching approximately 179 million tons (mt) by 2049-50 (FY50), according to a latest EY Parthenon report developed in collaboration with WWF-India and CII-Green Business Centre, with support from the India Green Steel Coalition (IGSC).

The surge will be driven by the country’s rapidly growing automotive, infrastructure, and construction sectors, as they pivot toward sustainable manufacturing practices.

“Moving to green steel is no doubt a big shift—it comes with its challenges, but also opens up huge opportunities for India’s industrial sector. Right now, the cost may look high, but that’s changing quickly. With carbon pricing on the rise and green hydrogen getting cheaper, what once felt like a nice-to-have for sustainability is fast turning into a business must-have,” said Kapil Bansal, Partner - Energy Transition and Decarbonization, EY Parthenon.

Based on an emission intensity benchmark of below 0.5 tons CO₂ per ton of crude steel, the analysis estimates that green steel demand—currently negligible—will rise significantly to 4.49 million tons by FY30. The construction sector is expected to lead adoption with 2.52 million tons, followed by infrastructure at 1.5 million tons and automobiles at 0.48 million tons. By FY40, total demand is projected to nearly triple to 73.44 million tons.

The study also reveals that India's current steel consumption stands at 136 mt, with the construction and infrastructure sectors collectively accounting for 78 percent of finished steel demand. This figure is expected to rise to 390 mt by FY50, driven by rapid urbanization and infrastructure development.