India to support steel exporters as EU carbon tax and quotas curb shipments
Time:Wed, 11 Feb 2026 09:27:21 +0800
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India has announced plans to support its steel industry as exports to the European Union face growing obstacles from the bloc’s Carbon Border Adjustment Mechanism (CBAM) as well as import duties and tariff quotas, according to the country’s Steel Secretary. The EU’s carbon tax on high-emission imports, including steel and cement, came into effect in January 2026.
Although India and the EU recently signed a new trade agreement that lowers tariffs on several products, CBAM remains unchanged and is expected to reduce India’s steel shipments to Europe, a market that currently accounts for about two-thirds of the country’s total steel exports.
In response, Indian steelmakers are exploring alternative markets in Africa and the Middle East to offset weakening demand from Europe, while the government prepares support measures to mitigate the impact on domestic producers.
