India has gained a significant steel export quota to the European Union, potentially covering over 80% of its shipments, as negotiations unfold amidst the EU’s new trade overcapacity measures and climate policies.
India has secured a country-specific tariff-rate quota of 1.9 million tonnes a year for steel exports to the European Union, with government officials expecting another 0.9 million tonnes to be available through residual quotas, potentially lifting total annual access to about 2.8 million tonnes. According to a Commerce Ministry official cited by KNN, the arrangement could cover more than 80% of India’s steel shipments to the bloc.
The timing matters. The EU’s new steel overcapacity regime, adopted by the Council in June, replaced the expiring safeguard system and cut tariff-free import volumes while raising duties on shipments above quota to 50%. EU ministers said the new framework is meant to shield the bloc’s steel industry from global overcapacity and trade diversion, with a revised tariff-rate quota system at its core.
India’s access appears to go beyond the 1.64 million tonnes reflected in the FTA text released by the EU earlier this month, suggesting steel concessions have been brought forward even though the wider India-EU free trade agreement has not yet been signed or put into force. Of the 1.9 million-tonne country quota, 950,000 tonnes fall under the FTA partner allocation and the remainder under the most-favoured-nation quota, according to the report.
Trade data cited by the ministry and reported by PTI show India exported about 3.8 million tonnes of steel worth $3.4 billion to the EU in 2025-26. That means the new quota could preserve a substantial share of current trade, although exporters will still face the EU’s Carbon Border Adjustment Mechanism. The think tank Global Trade Research Initiative, quoted by PTI, said the carbon charge would remain applicable to Indian steel both inside and outside the quota and could average about 35% when fully phased in.
Officials are also working with Brussels to expand domestic capacity for CBAM verification, including recognition of Indian verification agencies, with at least 10 agencies targeted and six applications already submitted. Separately, India is advancing its own carbon credit trading system and discussions with the EU on carbon pricing, while the steel quota covers products ranging from hot-rolled and cold-rolled sheets to stainless steel, rebars, wire rods and pipes.
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