India is finalizing its national scrap metal policy to bring it in line with industry changes and global trends.

The Indian Ministry of Steel is in the final stages of developing a national scrap metal policy aimed at bringing the sector in line with the evolving dynamics of the domestic industry and new global developments, a senior government official said on Wednesday, January 21.

Growing demand for scrap metal amid capacity expansion

According to Daya Nidhan Pandey, joint secretary of the Ministry of Steel, scrap consumption in India's steel sector is steadily increasing, while overall scrap availability is projected to rise to almost 36 million tons.

"This clearly indicates that demand for scrap metal will increase dramatically as large-scale capacity expansion continues," Pandey said, highlighting the growing role of scrap metal in India's steelmaking landscape.

In this regard, the Indian Steel Association (ISA) has called on the government to implement supportive policy measures in the national budget for 2026-27 to encourage the increased use of scrap in green steel production.

GST reform proposed throughout the scrap metal supply chain

In its pre-budget memorandum submitted to the Ministry of Finance, the ISA called for the expansion of the reverse Goods and Services Tax (GST) mechanism throughout the scrap metal supply chain. The industry body said such a move would simplify tax compliance, curb leaks, and improve the overall ease of doing business.

Pandey added that India is striving to gradually increase the share of scrap in steelmaking.