Indian Steel Needs to Kick Its Coal Habit — But the Transition Won’t Be Easy

India’s steel industry is entering an important phase. As the country expands infrastructure and manufacturing, steel demand is expected to remain strong. But there is one major challenge: steel production is still heavily dependent on coal, making the sector one of the harder industries to decarbonise. What’s Changing? Green hydrogen could eventually replace part of the coal used in traditional steelmaking. Scrap-based steelmaking and electric arc furnaces can also help reduce emissions. Renewable power will become increasingly important as steel companies try to lower the carbon intensity of their operations. However, shifting away from coal requires huge capital expenditure, new technology and reliable availability of green hydrogen and renewable electricity This transition could eventually separate efficient steel producers from the rest. Companies that invest early in cleaner technology may be better positioned as global customers increasingly focus on the carbon footprint of the steel they purchase. It is also important from an export perspective. With mechanisms such as Europe's carbon-related import rules becoming more relevant, producing lower-emission steel could eventually become a competitive advantage rather than simply an ESG initiative. India cannot stop expanding steel production just to reduce emissions—we need steel for roads, railways, housing, factories and the entire manufacturing ecosystem. The practical solution is to produce more steel while gradually making each tonne cleaner. This won't happen overnight. But over the next decade, green hydrogen, renewable energy, recycling and efficient manufacturing could significantly change how we value steel companies. $TATASTEEL Sometimes the biggest investment theme isn't higher demand—it's how an old industry adapts to a new economic reality. #GREENSTEEL #INDUSTRIALTRANSITION #ENERGYSECURITY #GREENHYDROGEN #MANUFACTURING