India’s steel industry is facing a clear gap between its green ambitions and practical reality. In the short term, electric arc furnaces and induction furnaces that use scrap steel are seen as the most practical way to reduce carbon emissions. However, this approach is facing serious challenges related to logistics and supply conditions.

India is not suffering from a global shortage of scrap steel. Instead, higher import pressure is caused by tensions in the Middle East, sharply rising container freight rates, and increased insurance requirements. At the same time, regions such as Europe are exporting less scrap steel due to stricter carbon policies.

Even if the scrap supply chain improves, scrap steel alone cannot support all green steel production. This is especially true for flat steel products, which require more advanced technology and higher raw material standards. New technologies such as hydrogen‑based direct reduced iron have strong potential, but adoption remains limited among producers.

Despite the government’s green classification standards, most new steel capacity in India continues to rely on coal‑based production. Overall, India’s green steel transition will depend heavily on improvements in scrap supply chains and wider use of clean energy. Until these conditions become more common, progress is expected to remain slow and gradual.