India is hopeful of securing preferential treatment for its steel exports under the European Union’s upcoming trade regulations, as negotiations intensify within the broader framework of the India–EU Free Trade Agreement (FTA). The new EU regime is expected to replace the bloc’s existing steel safeguard measures and could significantly reshape access for global steel exporters.
The European Union is in the process of finalising a new steel trade framework aimed at addressing global overcapacity concerns. Once implemented, the new system is expected to introduce tighter import controls and reduced quotas, impacting major exporting nations. India, however, is seeking more favourable terms as an FTA partner, arguing that its position should differ from that of non-FTA countries.
Indian officials have indicated that discussions with the EU are ongoing to ensure that Indian steel producers are not disproportionately affected by the proposed changes. The government has emphasised that India is engaging constructively and in good faith, with the expectation that FTA partners will receive more accommodating treatment under the new regulatory structure.
Currently, India exports approximately four million tonnes of steel annually to the European Union, accounting for around 10 per cent of the EU’s steel imports across key product categories. Under the proposed regulations, overall import quotas could be reduced sharply, potentially constraining market access unless special provisions are negotiated.
The new EU steel framework is expected to come into force from mid-2026 and will run alongside the EU’s Carbon Border Adjustment Mechanism (CBAM), which applies to carbon-intensive products such as steel. While CBAM remains outside the scope of tariff concessions, India is continuing dialogue on how climate-linked measures interact with trade commitments under the FTA.
The India–EU Free Trade Agreement, once fully implemented, is expected to eliminate tariffs on a vast majority of goods traded between the two regions. Indian authorities believe this broader trade partnership strengthens their case for more flexible steel import quotas and less restrictive conditions compared to countries without similar agreements.
For Indian steelmakers, a favourable outcome could help sustain export volumes to the EU despite tightening global trade norms. The negotiations are being closely watched by the industry, as the final structure of the EU’s new regulations will play a critical role in shaping India’s long-term access to one of its key overseas markets.
