Industry body Associated Chambers of Commerce and Industry of India (Assocham) is seeking targeted incentives for hydrogen-based direct reduced iron (DRI) production and preferential green financing to support the local steel industry's transition to low-carbon production, it said in a memorandum submitted to the government on Monday, January 12.
The industry body said these incentives should be part of the national budget for 2026-27, which will be tabled in the Indian Parliament next month.
Assocham called for incentives for waste heat recovery systems and the creation of renewable power plants, saying these measures are critical to reducing emissions from steel production, noting that decarbonization poses both challenges and opportunities and timely policy support can significantly accelerate the transition to sustainable steel production.
Industry The body also advocated for incentives for scrap collection and recycling, emphasizing that strengthening domestic recycling infrastructure through skill development initiatives is essential to reduce India's dependence on imported raw materials.
Even though India is the world's second-largest steel producer after China and is posting a healthy growth rate of 8-9 percent, the sector is facing increasing pressure, Assocham said.
Higher input costs, depreciating rupee and heavy dependence on imported
