India is set to play a dominant role in the global expansion of coal-based steelmaking capacity, accounting for over 60% of upcoming blast furnace projects worldwide, according to a new industry report highlighting slow progress in the sector’s decarbonisation efforts.
The report shows that India, along with China, is driving the bulk of new coal-intensive steel capacity, with the two countries together responsible for around 86% of planned global additions. India alone leads new blast furnace developments, reflecting its rapid industrial and infrastructure-led steel demand growth.
Despite global efforts to shift toward low-carbon steel production, the study indicates that coal-based blast furnace technology continues to dominate upcoming capacity additions. Globally, more than 300 million tonnes per annum of new coal-based steel capacity is either planned or under construction.
Analysts note that India’s steel expansion strategy is closely tied to its broader economic development goals, with the country targeting a sharp rise in crude steel output over the next decade to support infrastructure, construction and manufacturing demand.
However, environmental experts warn that the heavy reliance on coal-based production could lock in high carbon emissions for decades, as steelmaking remains one of the most emissions-intensive industrial sectors globally.
The findings underline a growing tension between India’s industrial expansion ambitions and global climate targets, with the country emerging as a central player in shaping the future trajectory of steel production technology.