India’s steel exports to the European Union are set to retain significant market access under the bloc’s new tariff-rate quota regime, with potential quota coverage estimated at more than 80% of India’s steel exports to the EU.
India has secured a country-specific tariff-rate quota of 1.9 million tonnes annually, while exporters could access another 0.9 million tonnes through residual quotas, taking potential annual access to around 2.8 million tonnes, according to a Commerce Ministry official.
India exported around 3 million tonnes of steel products to the EU in FY26, meaning the potential quota could cover more than 80% of those shipments. The additional residual quota will be available on a first-come, first-served basis.
The development comes after the EU introduced its new steel import regime on July 1, 2026. The system provides duty-free tariff-rate quotas, while steel imports exceeding the applicable quotas face an out-of-quota duty of 50%.
Earlier, the India-EU FTA legal text provided for a country-specific quota of 1.64 million tonnes, including 694,853 tonnes under the FTA component and 946,616 tonnes under the Most Favoured Nation (MFN) component. The latest country-specific allocation and residual access provide Indian exporters with a larger potential volume.
However, quota access does not remove the EU’s Carbon Border Adjustment Mechanism (CBAM) requirements. Indian steel exporters will continue to face carbon-related compliance and costs when supplying the European market.
The expanded quota access provides greater visibility for Indian steel exporters while maintaining the need to address carbon compliance and competitiveness in the European market.