India’s green steel industry is reaching an important stage. The country has already developed a sizeable supply base, and the key challenge is now shifting from production to demand creation. According to Council on Energy, Environment and Water (CEEW), as of 31 March 2026, around 89 steel producers had received green steel ratings, covering 12.34 million mt of certified production (under India’s green steel taxonomy).
Out of 12.34 million mt for certified output:
- Nearly 9 million mt (about 73%) of certified output, received the highest five-star rating.
- Another 1.33 million mt was rated four-star.
- While around 2.08 million mt received a three-star rating.
TMT bars dominate production with over 10.02 million mt, highlighting strong potential for green steel adoption in India’s construction and infrastructure sector. The remaining volume includes HRC, pipes and wire rods.
India’s current certified green steel has a weighted-average emissions intensity of around 1.42 tCO₂ per tonne of finished steel, significantly below the national threshold of 2.2 tCO₂ per tonne. This shows that existing technologies, energy-efficiency improvements and renewable power are already capable of reducing emissions without waiting for major technological breakthroughs.
Based on draft CCTS (Carbon Credit Trading System) targets, nearly 40 million mt of steel production could meet green steel thresholds by FY 2026-27. Maharashtra, Gujarat and Odisha could together account for approximately 73% of this potential availability.
The biggest risk is insufficient buyer demand. Unless government agencies, infrastructure developers and private companies actively include green steel in procurement policies. Cost should not be a major barrier, as CEEW estimates that renewable energy and efficiency measures can reduce emissions by 8-15% without necessarily increasing production costs.
Outlook:
India’s green steel market is likely to grow rapidly, but its success will depend on demand-side policies. Preferential public procurement, mandatory disclosure of green steel usage and improved scrap availability could create a stable market.
The next phase of India’s green steel transition will therefore be driven not only by cleaner production, but by the ability to convert growing supply into long-term commercial demand.
