Green Steel And Cement Drive India’s Climate-Ready Infrastructure

India’s infrastructure boom is colliding with climate imperatives, making steel and cement central to the country’s sustainability journey. Policymakers are leveraging demand-side measures to stimulate adoption of low-carbon materials, ensuring industrial growth aligns with environmental priorities.  

Public Procurement As A Catalyst  

Government procurement, accounting for nearly 20–22% of India’s GDP, is emerging as a powerful lever to stimulate demand for green steel and cement. By embedding environmental criteria into contracts, the state acts as a “first customer,” enabling producers to invest in cleaner technologies despite cost premiums. This approach bridges the gap between innovation and market deployment, while supporting economies of scale.  

Budgetary Push For Green Transition  

The Union Budget 2026–27 has reinforced demand visibility by combining infrastructure expansion with a green technology push. With ₹12.2 lakh crore allocated for capital expenditure and ₹20,000 crore earmarked for Carbon Capture, Utilisation and Storage (CCUS), the government is directly targeting emissions-intensive industries. This dual focus ensures industrial growth aligns with India’s Net Zero 2070 vision, while sustaining demand across roads, railways, and urban infrastructure.  

Industry Response And Market Confidence  

Industry leaders from cement and steel sectors have welcomed these measures, noting that the emphasis on CCUS and regional infrastructure development strengthens long-term growth prospects. The initiatives are expected to boost competitiveness, revive industrial clusters, and expand domestic manufacturing, particularly in Tier-II and Tier-III cities.  

Key Highlights  

•⁠  ⁠India targets 47% reduction in emissions intensity by 2035  

•⁠  ⁠Public procurement accounts for 20–22% of GDP, reshaping industrial pathways  

•⁠  ⁠Budget 2026–27 allocates ₹12.2 lakh crore capex and ₹20,000 crore for CCUS  

•⁠  ⁠Steel sector contributes 10–12% of India’s total emissions  

•⁠  ⁠Infrastructure expansion in Tier-II and Tier-III cities to broaden demand base  

Sources: Hindustan Times, Construction Business Today