Green Steel & Aluminium Collaboration with UAE: Proposals under negotiation on low-carbon metals.

Key Takeaway: Under the India-UAE CEPA framework, high-level negotiations are underway for joint development and trading of low-carbon steel and green aluminium, leveraging the UAE’s clean-energy infrastructure and India’s manufacturing scale to advance sustainable industrial policy and international cooperation.

Context and Background

India and the United Arab Emirates are deepening industrial ties under the Comprehensive Economic Partnership Agreement (CEPA), with Union Minister of Steel H.D. Kumaraswamy meeting UAE Minister of Economy Abdulla Bin Touq Al Marri on July 1, 2025. The dialogue aims to secure raw material supply chains, expand trade in steel and aluminium, and foster innovation-led green manufacturing.

India-UAE green metals collaboration

Proposals Under Negotiation

• Green Steel Production: Co-development of hydrogen-based Direct Reduced Iron (DRI) and energy-efficient Electric Arc Furnace (EAF) plants, powered by the UAE’s renewable energy capacity, to produce low-carbon steel for automotive and strategic sectors.
• High-Grade Aluminium: Joint ventures to establish solar and wind-powered aluminium smelters with advanced alumina refining, targeting 1 mtpa aluminium and 2 mtpa alumina capacity in phased investments.
• Raw Material Security: Long-term access to low-silica limestone and dolomite from Ras Al Khaimah for steel grade inputs, alongside proposals for calcined lime production units using local natural gas.
• Institutional Mechanisms: Formation of a Joint Working Group under CEPA to streamline logistics, standardise quality certifications, and facilitate technology transfer between Indian CPSUs and UAE partner.

Significance for UPSC Aspirants

• International Relations & Trade Policy: Exemplifies strategic economic diplomacy under CEPA, highlighting India’s pursuit of resilient supply chains and diversification of partnerships in line with Act East and Connect Central Asia policies.
• Sustainable Industrial Policy: Aligns with India’s Nationally Determined Contributions (NDCs) under the Paris Agreement by decarbonising heavy industries through green hydrogen and renewable energy integration.
• Make in India & Atmanirbhar Bharat: Strengthens domestic manufacturing capacity and upstream linkages, ensuring raw material security and value addition within India.
• Governance & Institutional Reform: Illustrates use of inter-governmental working groups and public-sector undertakings (SAIL, NMDC, MECON) as instruments of bilateral economic engagement.

Implications and Outlook

These negotiations signal a transformative shift toward low-carbon metallurgy, positioning India to meet its 300 million tonne steel target by 2030 with reduced emissions. Successful collaboration can catalyse investments in green energy, spur technology innovation in hard-to-abate sectors, and reinforce India’s role in global sustainable supply chains—paving the way for similar pacts with other energy-resource nations.