India’s green steel demand to soar to 179 mt by 2050: EY Parthenon

New Delhi: India’s demand for green steel is set for exponential growth, reaching about 179 million tonnes by FY50, according to a latest EY Parthenon report developed in collaboration with WWF-India and CII-Green Business Centre, with support from the India Green Steel Coalition.

According to the report, the surge will be driven by the country’s rapidly growing automotive, infrastructure, and construction sectors, as they pivot toward sustainable manufacturing practices.

“Moving to green steel is no doubt a big shift… Right now, the cost may look high, but that’s changing quickly. With carbon pricing on the rise and green hydrogen getting cheaper, what once felt like a nice-to-have for sustainability is fast turning into a business must-have,” said Kapil Bansal, Partner - Energy Transition and Decarbonisation, EY Parthenon.

The report added that based on an emission intensity benchmark of below 0.5 tonnes CO₂ per tonne of crude steel, the analysis estimates that green steel demand — currently negligible — will rise significantly to 4.49 million tonnes by FY30.

The construction sector is expected to lead adoption with 2.52 million tonnes, followed by infrastructure at 1.5 million tonnes and automobiles at 0.48 million tonnes. By FY40, total demand is projected to nearly triple to 73.44 million tonnes.

The study also reveals that India's current steel consumption stands at 136 million metric tonnes, with the construction and infrastructure sectors collectively accounting for 78 per cent of finished steel demand. This figure is expected to rise to 390 million tonnes by FY50.