India is set to gain significantly wider access to the European Union steel market under the India-EU Free Trade Agreement, with annual steel export access reaching about 1.64 million tonnes. The agreement provides an additional preferential quota of 694,853 tonnes, alongside the existing 946,616-tonne WTO quota. Together, the quotas represent around 68.4% of India’s 2025 steel exports to the EU, offering Indian steelmakers greater market access and export opportunities. However, the benefit comes with important cost pressures. Steel shipments exceeding the quota will face a 50% EU tariff, while Indian exports will continue to fall under the European Union’s Carbon Border Adjustment Mechanism (CBAM). The carbon levy could add substantial costs as the mechanism is fully phased in. Flat steel products receive a major share of the allocation, with hot-rolled sheets and strips securing the largest quota. The expanded access could strengthen India’s position in the European steel market, but competitiveness will increasingly depend on low-carbon steel production, emissions reduction and cost-efficient manufacturing.
India Gains 1.64 Million-Tonne EU Steel Export Access Under FTA
India secures wider EU steel market access with a 1.64 million-tonne annual quota, but CBAM carbon costs and tariffs remain key challenges for steel exporters.
Economic Times 1 min read
