India is considering a phased policy to mandate the use of green steel in public procurement, aiming to create a stable, large-scale market for low-carbon steel and accelerate the decarbonization of its steel industry. 

A report by the Confederation of Indian Industry (CII) suggests that if the government sets a minimum requirement of 26% green steel in public projects, the country could secure up to 16 million tons of certified green steel supply by fiscal year 2029/30. 

Government-led infrastructure projects consume around 31.6 million tons of steel annually, making public procurement a key driver of demand. 

Surveys show that 93% of steel producers are willing to supply green steel at scale if supported by cost compensation mechanisms such as green premiums, tax exemptions, and carbon credits.