India to Support Steel Exports Amid EU Carbon Tax
India’s steel exports are facing continued challenges due to the European Union’s carbon tax and import quotas, prompting the Indian government to step in to support the sector, federal steel secretary Sandeep Poundrik said on Monday. The comments come shortly after India and the EU signed a trade deal that reduced tariffs on several goods but left the EU’s Carbon Border Adjustment Mechanism (CBAM) in place. Around two-thirds of India’s steel exports are shipped to Europe.
Since its announcement in 2021, the EU’s CBAM policy has drawn sharp criticism from India, which argues that the levy could hinder steel trade. The framework, effective from January, imposes fees on imports like steel and cement produced with high carbon emissions, increasing costs for exporters.
As a result, Indian steel mills are expected to explore alternative markets in Africa and the Middle East to offset potential declines in European shipments. The government has indicated it will take measures to support the industry and mitigate the impact of these trade barriers.
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