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Informist, Thursday, Sept. 17, 2026

 

NEW DELHI – India has got an annual country-specific quota of 1.9 million tonnes for steel shipments to the European Union, with exporters likely to get access to another 0.9 million tonnes through residual quotas, effectively giving potential annual access to 2.8 million tonnes of duty-free exports, a commerce ministry official said Thursday.

 

The benefit has been frontloaded for the sector, much ahead of the Free Trade Agreement between India and the EU coming into force. India's FTA with the EU, which was concluded in January, will be signed before the end of this year. The pact is expected to be implemented in early 2027.

 

"As the regulation is in place from Jul. 1, Indian exporters have already started availing the quota and shipping steel to the 27-nation bloc," the official said. Exports under the quota are duty-free, and shipments above the available quota face a 50% tariff.

 

The 0.9 million tonnes of residual quota is a conservative estimate and would be available to exporters on a first-come, first-served basis, the official said. "The negotiated quota arrangement with the EU will help India secure over 80% of its exports to the EU," the official said. India exported around 3 million tonnes of steel to the EU in 2025-26 (Apr-Mar), making the bloc a crucial market for Indian steel producers. 

 

However, steelmakers will continue to come under the EU's separate Carbon Border Adjustment Mechanism. The mechanism will continue to apply to steel even when shipments fall within the tariff-rate quota, the official said. Under the mechanism, the EU will impose a carbon tax on goods such as steel, aluminium, fertiliser and cement as they emit carbon beyond a specified threshold during manufacturing. 

 

India is working with the EU to build domestic capacity to verify the Carbon Border Adjustment Mechanism. The government is looking at at least 10 agencies, with six applications already submitted, the official said. "We have called all verification bodies here. We have done consultation with them. We have done training and capacity building," the official said. End

 

Reported by Pratiksha

Edited by Saji George Titus

 

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