FM invites Worldsteel to open India office, says carbon tariffs won’t solve steel surplus
Nirmala Sitharaman urged the World Steel Association to establish a local base amid rising domestic demand, warning that unilateral tools like the EU's CBAM only redirect excess global capacity without fixing overproduction.
Union Finance Minister Nirmala Sitharaman invited the World Steel Association (Worldsteel) to open an office in India, highlighting the country's growing significance as a global steel demand driver and expanding production capabilities. Seeking a unified decarbonization strategy, Sitharaman dismissed unilateral measures such as the EU's Carbon Border Adjustment Mechanism (CBAM) as ineffective in tackling global steel surplus.
India, now the largest source of global steel demand, has increased its crude steel production by 10% to 165 million tonnes in 2025 and 6% during January-August 2026. The country's share of global steel production has risen from 5.2% in 2014 to approximately 9% and is projected to double net increase in global demand in 2026 and account for around 40% of the increase in 2027.
Sitharaman attributed this growth to sustained government investment in infrastructure, emphasizing the need for India to balance capacity expansion with enhanced raw-material security, technological advancements, and environmental performance. Decarbonization efforts will include increased use of steel scrap, renewable energy, direct reduced iron technology, and green hydrogen, alongside potential applications of AI and nuclear technologies.
Sitharaman stressed the importance of transparent carbon data for steel exports to premium markets and the need for a coordinated global approach to address overcapacity while maintaining a transition to lower-carbon steelmaking.
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