In December 2024, the Indian government classified steel with carbon dioxide emissions below 2.2 metric tons per ton of finished steel as "green." 

The government is also exploring the use of green steel in government projects. To encourage low-carbon steel production, India’s steel ministry has requested 150 billion rupees from the budget, with the incentives planned to remain in place until 2030.

The ministry aims to use these incentives to promote research and development, lower carbon emissions, enhance raw material efficiency, and motivate banks to offer reduced interest rates on renewable energy loans. 

The ministry will submit a proposal for cabinet approval to implement the incentive program for steel mills.