India is in the final stage of formulating a national steel scrap recycling policy to align its steel industry with domestic industrial changes and emerging global trends. 

Daya Nidhan Pandey, Joint Secretary of the Ministry of Steel, said scrap consumption is rising alongside large-scale capacity expansion, with total scrap availability expected to reach nearly 36 million tons, making scrap increasingly important in steel production. 

The Indian Steel Association (ISA) has urged the government to introduce supportive measures in the 2026-27 budget, including extending the GST reverse charge mechanism across the entire metal scrap supply chain to promote green steelmaking. 

Pandey added that India aims to lift scrap usage to the global average of 31%, noting that scrap will be critical in reducing raw material use, cutting coal imports and emissions, and supporting India’s 2070 net-zero goal as steel capacity continues to expand.