India's largest steelmakers are investing 75,000 crore rupees to expand capacity, but the move risks locking in high-carbon assets. With heavy reliance on coal-based blast furnaces, the industry faces significant financial pressure from the European Union's Carbon Border Adjustment Mechanism (CBAM) and volatile coking coal costs. Long-term competitiveness now depends on the transition to electric arc furnace (EAF) technology and reducing emission intensity. Without a shift toward low-carbon production, Indian steel exporters may struggle to offset domestic supply gluts with overseas revenue.
