India UAE green steel partnership under CEPA aims to strengthen sustainable steel and aluminium production using green hydrogen and raw material security from Ras Al Khaimah.
India–UAE Forge Strategic Partnership in Green Steel & Aluminium
Expanding Bilateral Industrial Cooperation
Union Steel Minister H. D. Kumaraswamy met with UAE’s Minister of Economy Abdulla Bin Touq Al Marri under the India–UAE CEPA framework to launch a strategic partnership aimed at sustainable growth in steel and aluminium ndia — the world’s second-largest steel producer — is targeting 300 million tonnes of steel production by 2030. This agreement, focused on green steel, high-grade aluminium, and raw material security, leverages UAE’s resources, clean energy ecosystem, and trade infrastructure
Focus Areas & Green Steel Transition
Discussions prioritized green steel production, energy-efficient manufacturing, and developing high-grade alloys vital for strategic sectors like automotive and defence . The partnership will explore UAE’s role in supplying low-silica limestone via Ras Al Khaimah, green hydrogen integration, and setting up joint working groups to streamline logistics and investment CPSEs like SAIL, NMDC, and MECON inaugurated Dubai offices, bolstering industrial and mineral supply chain integration
Strengthening Raw Material Security
Strategic discussions in Ras Al Khaimah centered on securing resources for India’s steel production — limestone, green hydrogen, and mineral inputs. With SAIL currently importing 2.5 Mt limestone from RAK, ramping up to align with planned capacity expansion (20–35 Mtpa) is expected
Leveraging UAE’s Ecosystem & Global Supply Chains
The UAE’s clean energy infrastructure, smart logistics, manufacturing hubs, and global trade links make it a natural partner for advancing India’s green steel initiative This initiative underpins Delhi’s vision for innovation-driven, resource-secure industrial partnerships, echoing PM Modi’s global industrial diplomacy
Why This News Matters
Strengthening Energy & Resource Security
The partnership addresses India’s critical need for reliable raw materials — limestone, bauxite, energy — to meet expanding steel and aluminium production targets. UAE’s backing stabilizes supply chains essential for industrial resilience.
Embracing Sustainable Industrial Transition
By prioritizing green steel and energy-efficient aluminium manufacturing, India aligns with global climate goals and COP commitments. Green hydrogen, green steel frameworks, and joint R&D signify a pivot toward low-carbon industrialisation.
Enabling Strategic Sector Growth
High-grade alloys are vital for India’s automotive, defence, and infrastructure sectors. Domestic access through UAE collaboration reduces dependency on imports and supports continuous industrial modernization.
Global Partnerships & Economic Diplomacy
This undertaking exemplifies how India uses CEPA agreements to foster comprehensive industrial cooperation. Opening CPSE offices in Dubai enhances global outreach and boosts bilateral trade and investment flows.
Current Affairs Relevance for Exams
This news combines current economic policy, international relations, climate tech, and industrial strategies — all key areas for UPSC, PSC, railways, banking, defence, police, and teaching exams. It reflects real-world application of government policy and economic diplomacy.
Historical Context
Roots in CEPA
India and the UAE signed the Comprehensive Economic Partnership Agreement (CEPA) in February 2022, which immediately boosted bilateral trade by about 15% This laid the groundwork for industrial tie-ups.
Previous Green Initiatives
India introduced the Taxonomy of Green Steel in December 2024, defining emission thresholds (≤2.2 tCO₂ per tonne of steel) and initiating star ratings for certification The framework also launched the National Mission on Green Steel and the Green Steel Public Procurement Policy.
CEPA-Embedded Industrial Growth
Under CEPA, earlier bilateral projects included smart city development, renewable energy, and agri-tech cooperation These have progressively evolved into strategic industrial collaborations like the present agreement.
Key Takeaways from India‑UAE Green Steel & Aluminium Pact
| # | Key Takeaway |
|---|---|
| 1 | Under CEPA, India–UAE will collaborate on green steel and high-grade aluminium for automotive and defence industries. |
| 2 | UAE support will help India reach its 300 Mt steel production goal by 2030 via raw material supply and energy-efficient tech. |
| 3 | Joint initiatives include green hydrogen adoption, limestone imports from Ras Al Khaimah, and UAE-based CPSE offices for logistics synergy. |
| 4 | Partnership promotes global supply chain resilience and decarbonised industrial manufacturing. |
| 5 | CPSEs like SAIL, NMDC, MECON will leverage UAE presence to enhance international industrial integration. |
FAQs: Frequently Asked Questions
1. What is the India–UAE Green Steel & Aluminium Partnership?
It is a bilateral agreement to promote sustainable industrial growth through green steel production, high-grade aluminium development, and secure raw material supply chains under the CEPA framework.
2. What is green steel?
Green steel refers to steel produced with significantly reduced carbon emissions, often using green hydrogen, renewable energy, or other low-emission technologies.
3. What is CEPA?
CEPA stands for Comprehensive Economic Partnership Agreement, signed between India and UAE in 2022, facilitating trade, investment, and strategic collaboration across key sectors.
4. Which CPSEs are involved in this initiative?
Public Sector Enterprises like SAIL, NMDC, and MECON are participating by setting up offices in Dubai and collaborating on joint industrial ventures.
5. Why is limestone from Ras Al Khaimah important?
Low-silica limestone from Ras Al Khaimah is a critical raw material in steel production. India imports this to meet its expanding infrastructure and steel demand.
6. How will this help India’s 2030 steel production goal?
The partnership ensures material security, energy-efficient production, and infrastructure investment to support India’s target of producing 300 million tonnes of steel by 2030.
7. What is the significance of green hydrogen in this pact?
Green hydrogen is central to decarbonizing industrial processes and is being explored as a clean fuel for steel and aluminium production.
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