India is set to receive a country-specific annual steel export quota of 6.95 lakh tonnes under the proposed India-EU free trade agreement, potentially giving Indian steelmakers greater access to the European market amid tighter import safeguards.
Highlights
- India to get a 6.95 lakh tonne annual steel quota specifically under the FTA.
- Overall annual access could reach around 16.4 lakh tonnes across FTA and MFN quotas.
- Around 9.47 lakh tonnes will be available under the MFN framework.
- Hot-rolled sheets and strips get the largest allocation.
India Secures Bigger Steel Export Access To EU Under Trade Pact
India could gain significantly improved access to the European steel market under its proposed free trade agreement with the European Union, with the draft pact providing a country-specific annual steel quota of 694,853 tonnes, or around 6.95 lakh tonnes.
According to the draft agreement published by the EU, India’s overall annual steel quota access would be around 1.64 million tonnes, or 16.4 lakh tonnes. Of this, 946,616 tonnes would be available under the most-favoured-nation (MFN) framework, while 694,853 tonnes would be specifically reserved for India under the FTA.
The quota covers a wide range of steel products, including hot-rolled and cold-rolled sheets, stainless steel, metallic-coated and organic-coated products, rebars, wire rods, pipes and tubes.
Hot-rolled sheets and strips have received the biggest allocation at 509,605 tonnes annually. This includes 299,197 tonnes under the MFN quota and another 210,408 tonnes through the FTA provision.
Cold-rolled sheets have been allocated a quota of 218,658 tonnes, while metallic-coated sheets have received 197,860 tonnes. Organic-coated sheets have a quota of 186,038 tonnes, while non-alloy and other alloy quarto plates have been allocated 181,835 tonnes.
The arrangement assumes importance as the European Union tightens safeguards against overseas steel shipments. Under the EU’s Steel Overcapacity Regulation, which came into effect on July 1, duty-free import quotas have been set at 18.3 million tonnes. Imports exceeding the prescribed quotas face a 50% duty.
For Indian steelmakers, the country-specific allocation could provide more predictable access to a key export market. India currently ships around 4 million tonnes of steel annually to the European Union.
The quota mechanism will also be reviewed periodically. The first review is scheduled one year after the FTA becomes effective, followed by reviews every five years.
India and the European Union concluded negotiations for the trade agreement on January 27. The pact is expected to be signed by the end of 2026 and implemented next year.
