Steel exports from India remain under significant pressure due to the implementation of the European carbon tax (CBAM) and the European Union’s import quotas. The country’s authorities are already preparing to support the steel sector in these challenging external economic conditions.
This is reported by Finway
CBAM and EU Quotas: Key Challenges for Indian Metallurgists
About two-thirds of India’s total steel exports are traditionally directed to European countries. However, with the introduction of CBAM and stricter import quotas, a reduction in Indian steel supplies to the European market is expected. This could pose a serious challenge for the industry, forcing Indian metallurgists to pivot to new markets, particularly in Africa and the Middle East.
Government’s Position and Next Steps
India’s Secretary of Steel, Sandeep Poundrik, emphasized that the government will enhance support for the sector in response to external challenges. He highlighted the need for proactive measures to maintain the competitiveness of Indian steel in global markets.
“In light of the European CBAM, tariffs, quotas, and other challenges, exports will remain an issue, and we will be compelled to take action,” Poundrik noted at a government event in New Delhi.
India is expected to accelerate the search for new markets and adapt its export policy in accordance with changes in international climate and trade regulations.