Steel Industry Must Diversify, Accelerate Decarbonisation: Govt Official

New Delhi: The government on Thursday said that the Indian steel industry must diversify, look for new export markets, and accelerate decarbonisation to remain globally competitive. The trade landscape is shifting as many countries are taking protective measures to safeguard their industries, according to a government official.

“Indian steel industry must accelerate decarbonisation, strengthen technology and R&D, and diversify its export markets to remain globally competitive amid a rapidly shifting trade landscape shaped by carbon border measures and tariff actions,” said Ashwini Kumar, economic advisor, ministry of steel while addressing Assocham’s India Steel Conclave 2026 here.

The US and the EU have both taken measures to support their industries. While the US has invoked Section 232, the EU has introduced measures like carbon border adjustment mechanism or CBAM to avoid steel manufactured through high-carbon-emission processes.

“The CBAM means that market access in high-value destinations will increasingly depend not only on the quality and price of the steel, but also on the carbon intensity of the production process. Given the high carbon intensity of Indian steel, it will become difficult for Indian steel exports to the EU,” Kumar said.

“I would like to look at it with a positive lens, an opportunity to modernise India's steel industry, improve technology and production processes, significantly reduce emissions and, at the same time, strengthen its long-term global competitiveness," he said.

"I am confident that with the right policy support, continuous innovation, investment in technology and close collaboration between government and industry, the Indian steel sector will not only overcome these challenges but emerge stronger and more globally competitive,” he added.