Hydrogen to Power India’s Green Steel Revolution by 2030s
India’s steel sector is poised for a major transformation as hydrogen emerges as a viable alternative to natural gas within 5-10 years, according to Union Steel Secretary Sandeep Poundrik. This shift promises to boost both decarbonisation efforts and global competitiveness.
Key Takeaways
- Hydrogen prices declining faster than expected, making green steel production viable
- India targets 500 million tonnes steel capacity by 2047 under Viksit Bharat vision
- 47% of India’s steel produced by 2,200 small and medium enterprises
- Three growth pillars: strategic investment, self-reliance, and sustainability
Green Steel Pathway
At the CII Steel Summit 2025, Poundrik highlighted that the “DRI plus Hydrogen” route offers a promising pathway for green steel production. The steel sector sits at the heart of India’s sustainability journey, focusing on decarbonisation through cleaner technologies.
“Aligned with the vision of Viksit Bharat, our target is to reach 500 million tonnes steelmaking capacity by 2047,” said Poundrik. “At the current pace, we would be adding around 100 million tonnes every five to seven years.”
MSMEs: The Backbone of Indian Steel
Contrary to popular belief, nearly 47% of India’s steel is produced by approximately 2,200 medium and small enterprises. These players form the backbone of India’s distributed and resilient steel ecosystem, Poundrik emphasized.
The government is working on multiple fronts to strengthen the sector:
- Collaborating with Coal Ministry to increase domestic coking coal share
- Implementing Quality Control Orders to prevent substandard steel imports
- Creating level playing field for domestic and foreign producers
Industry Perspectives
Koushik Chatterjee of Tata Steel noted that steel forms the backbone of India’s industrial transformation and national resilience. Under the National Steel Policy, India aims to achieve 300 million tonnes capacity by 2030-31.
Jayant Acharya of JSW Steel highlighted India’s demographic advantage and structural reforms like GST 2.0 fueling consumption. “The future growth rests on three key pillars – strategic investment, self-reliance, and sustainability,” he stated.
Acharya also observed that steel demand elasticity with GDP remains around 1.5 times, reflecting deep integration with India’s economic trajectory. Every steel plant acts as a catalyst for regional development by generating livelihoods and uplifting local communities.
The CII Steel Summit brought together industry leaders, policymakers, and experts to discuss capacity expansion, green steel initiatives, and the sector’s pivotal role in nation-building.
