The Indian steel industry is undergoing a significant transformation towards carbon neutrality to align with global climate objectives and domestic sustainability targets. The sector is preparing to adapt to international regulations such as the European Commission's Carbon Border Adjustment Mechanism (CBAM), which will require strict adherence to carbon emission standards for export competitiveness. India's ambitious goal of achieving carbon neutrality by 2070 has led to the implementation of policies like the Carbon Credit Trading Scheme, incentivizing the adoption of environmentally friendly steel production methods. The Ministry of New and Renewable Energy (MNRE) has introduced the SIGHT scheme to promote the production of green hydrogen in industrial processes, supporting the transition to more sustainable steel manufacturing. By incorporating green hydrogen into steel production, the industry can significantly reduce its carbon footprint and reliance on traditional coal-based methods. Current steel production practices in India heavily rely on the Blast Furnace-Basic Oxygen Furnace (BF-BOF) route, which is energy-intensive and coal-dependent. The shift towards hydrogen-based Direct Reduced Iron-Electric Arc Furnace (H2-DRI-EAF) processes offers a greener alternative with lower carbon emissions. However, challenges such as hydrogen production and transportation infrastructure need to be addressed to enable a smooth transition. To facilitate this transformation, strategic policy recommendations include the development of a Green Steel Corridor to support green steel projects, enhancing iron ore utilization in regions abundant with renewable energy sources, promoting scrap recycling to reduce energy consumption, and investing in a nationwide hydrogen infrastructure network for cost-effective transportation. These initiatives aim to strengthen India's position in sustainable steel production and align with the global shift towards greener manufacturing practices.