With hydrogen prices falling faster than expected, India could witness hydrogen emerging as a viable alternative to natural gas within the next five to ten years, a senior government official said on Tuesday. The transition is expected to play a crucial role in the country’s decarbonisation efforts and enhance its global competitiveness.
Speaking at the CII Steel Summit 2025, Union Steel Secretary Sandeep Poundrik said that the Direct Reduced Iron (DRI) plus Hydrogen route offers a promising pathway for green steel production. He noted that the steel industry is witnessing major opportunities for investment, driven by increasing demand from rapidly expanding sectors such as defence, space, automotive, and power.
“The consistent growth in steel consumption and capacity, coupled with rising prospects in specialty and green steel, positions India well to achieve its long-term target,” Poundrik said. He reaffirmed the government’s goal of reaching 500 million tonnes of steelmaking capacity by 2047, aligned with the vision of Viksit Bharat.
At the current pace of expansion, India is expected to add about 100 million tonnes every five to seven years, enabling the country to meet domestic needs while emerging as a global leader in sustainable steel production.
The Steel Secretary also addressed the misconception that India’s steel sector is dominated solely by a few large players. He pointed out that nearly 47 per cent of the steel in India is produced by around 2,200 medium and small enterprises, underscoring their vital role in building a distributed and resilient industrial ecosystem.
Highlighting the importance of self-reliance in the steel sector, Poundrik said the Ministry of Steel is working closely with the Ministry of Coal to increase the share of domestic coking coal used in steelmaking. This collaboration aims to enhance security in raw material supply and reduce dependence on imports.
He added that the government is also taking steps to prevent the influx of cheap and substandard steel into the Indian market. Measures such as Quality Control Orders (QCOs) are being implemented to ensure both domestic and foreign producers adhere to uniform quality standards, creating a level playing field in the sector.
During the summit, industry leaders highlighted the sector’s central role in India’s economic and infrastructural growth. Koushik Chatterjee, Executive Director of Tata Steel Ltd and Co-Chairman of the CII National Committee on Steel, described steel as the backbone of India’s industrial transformation — essential to the development of world-class infrastructure, modern cities, and sustainable manufacturing.
Jayant Acharya, Joint Managing Director and CEO of JSW Steel Ltd, noted that structural reforms such as GST 2.0, along with rapid urbanisation, a growing middle class, and increasing discretionary spending, are generating robust demand for steel.
The summit underscored a shared optimism across government and industry leaders that India’s steel sector, propelled by green hydrogen and technological advancements, will play a defining role in achieving the nation’s long-term sustainability and growth targets.
