India’s Steel Export Cap to Europe Set
In line with implementing the free trade agreement, India's annual steel export cap to Europe has been set at 1.64 million tons; volumes exceeding this amount will be subject to 50% tariffs.
Under this agreement, India will be allowed to export 1.64 million tons of steel annually to the European Union. Importantly, any export volume exceeding this cap will be subject to a 50% EU tariff.
This agreement covers a wide range of products including hot-rolled and cold-rolled sheets, alloy and non-alloy steels, stainless steel products, and wire rods, with the largest share belonging to hot-rolled sheets (509,600 tons).
However, India’s steel industry has not expressed full satisfaction with this volume. Representatives of the sector emphasized in a report to India’s Ministry of Commerce that this quota is less than their actual need and that they had expected to see 29% to 35% growth in quotas—an issue that could place India in a weak position in the competition for access to the European market.
On the other hand, a major challenge casts a shadow over this agreement: the “European Carbon Border Adjustment Mechanism” (CBAM). According to analyses by the GTRI think tank, this preferential quota does not exempt Indian exporters from paying carbon costs, and it is estimated that full implementation of CBAM could increase production costs by up to 35%.
This agreement, after going through ratification and notification procedures, will likely be fully implemented by the end of 2026.