Steel industry must look for new markets: Govt official

The Indian steel industry must diversify, look for new export markets, and accelerate decarbonisation to remain globally competitive, a government official said on Thursday. The trade landscape is shifting as many countries are taking protective measures to safeguard their industries, Ashwini Kumar, Economic Advisor, Ministry of Steel, said.

“Indian steel industry must accelerate decarbonisation, strengthen technology and R&D, and diversify its export markets to remain globally competitive amid a rapidly shifting trade landscape shaped by carbon border measures and tariff actions,” he said addressing ASSOCHAM’s India Steel Conclave 2026 in the national capital.

The US and the EU have both taken measures to support their industries. While the US have invoked Section 232, the EU has introduced measures like CBAM (Carbon border adjustment mechanism) to avoid steel manufactured through high-carbon-emission processes.

CBAM means that market access in high-value destinations will increasingly depend not only on the quality and price of the steel, but also on the carbon intensity of the production process. Given the high carbon intensity of Indian steel, it will become difficult for Indian steel exports to the EU, he noted.

“I would like to look at it with a positive lens, an opportunity to modernise India’s steel industry, improve technology and production processes, significantly reduce emissions and, at the same time, strengthen its long-term global competitiveness.

I am confident that with the right policy support, continuous innovation, investment in technology and close collaboration between government and industry, the Indian steel sector will not only overcome these challenges but emerge stronger and more globally competitive,” Kumar said.

Tushar Makkar, Head, Corporate Communications, ArcelorMittal Nippon Steel India (AMNS India), highlighted the need for uninterrupted supply of raw materials amid global situations.

“Raw material security continues to be a strategic concern. India remains dependent on imports for approximately 85 per cent of its coking coal requirements,  exposing producers to supply-chain disruptions, freight volatility, geopolitical risks and raw-material price fluctuations,” he said.