India exported an average of 30 lakh tonnes of steel products that fall under the quota regime over 2022-24
| Photo Credit: The Hindu
Despite the European Union (EU) imposing curbs on imports of steel, India has managed to safeguard more than 80% of its steel supplies to the EU by negotiating that steel-related concessions included in the India-EU trade deal be front-loaded and applicable before the deal comes into force, a senior government official said on Thursday.
The EU has since July 2026 implemented an amended quota-based system for certain steel imports that drastically cut country-wise quotas in a bid to reduce overall steel imports.
“The text of the trade deal says the quota for India was 16.5 lakh tonnes for the items that were within the quota mechanism,” the official said on the condition of anonymity. “Due to India’s negotiations, when the system was finally implemented in July, India’s quota was expanded to 19 lakh tonnes.”
He further said that, even though the FTA has not yet come into effect, India managed to get a concession from the EU to “front-load” the steel concessions so that they could be applicable from July 2026.
Under residual quotas that India receives due to the free trade agreement (FTA), the total potential quota for Indian steel exports now stands at 28 lakh tonnes.
India exported an average of 30 lakh tonnes of steel products that fall under the quota regime over the years 2022-24, he said, adding that if Indian exporters make full use of the residual quotas, India stands to secure more than 80% of its quota-based steel exports.
Indian steelmakers, however, will have to still pay the EU’s separate Carbon Border Adjustment Mechanism (CBAM), even if their exports fall within the quota.
The official added that India is working with the EU to build domestic capacity for CBAM verification, including recognition of Indian verification agencies.
The Indian government is trying to get at least 10 agencies verified, which would help Indian exporters verify their carbon tax payments and other requirements within the country itself, instead of having to look abroad for these services.
The India-EU FTA is currently with the European Commission to sign, which the government expects will take place in December. Following this, the deal will be placed before the European Parliament and is expected to come into force in “early 2027”, the official said.
Published – September 17, 2026 07:19 pm IST
