India gains wider EU steel access, but carbon levy remains

Business Recorder reports that a free trade pact between India and the European Union opens room for Indian steel shipments of up to 1.64 million metric tons annually. Exporters, however, will still face carbon costs, and the Global Trade Research Initiative estimates the border levy could average roughly 35% of goods value once fully phased in. The EU's border mechanism covers every steel import, whether or not it falls within the quota.

The deal grants an extra preferential allocation of 694,853 tons, sitting alongside the existing WTO allocation of 946,616 tons. Together the two allocations amount to roughly 68.4% of the 2.4 million tons India shipped to the bloc in 2025, compared with 39.4% under the older quota alone. GTRI's review of the text, released on Friday, says shipments above the quota will face the EU's 50% tariff, and its findings could still change.

Flat steel accounts for most of the extra access, and hot-rolled sheets and strips hold the biggest slice at 509,605 tons. The additional quota starts only after the India-EU FTA takes effect, which is anticipated by the end of the year. Access also depends on product coverage, rules of origin, and how much quota remains available.