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Decarbonisation Key for Indian Steel Industry's Global Competitiveness

UPSC / SSC current affairs note · IR

IRIndustry and InfrastructureGovernment Policies and Interventions

Why in news

Ashwini Kumar, Economic Advisor, Ministry of Steel, highlighted that the Indian steel industry must accelerate decarbonisation and diversify exports to stay globally competitive amid changing trade rules like carbon border measures. He outlined six key priorities for the sector's growth.

Background

The Indian steel industry is a major contributor to the economy but faces challenges from global carbon border adjustment mechanisms and the need to reduce emissions. Decarbonisation is critical for maintaining export competitiveness.

Key facts

in5points
  1. Ashwini Kumar, Economic Advisor, Ministry of Steel, emphasized the need for decarbonisation in the Indian steel industry.

  2. Six key priorities were outlined for the sector's growth.

  3. Diversification of export markets is necessary to remain globally competitive.

  4. Changing trade rules, such as carbon border measures, impact the industry.

  5. Accelerating R&D is part of the strategy to boost competitiveness.

Prelims pointers

  • Ministry of Steel
  • Carbon border adjustment mechanisms (CBAM)
  • Decarbonisation

Mains angles

  • Discuss the challenges and strategies for decarbonising the Indian steel industry in the context of global climate commitments.
  • Critically examine the impact of carbon border adjustment mechanisms on India's steel exports and the measures needed to mitigate them.