India's steel exports to the EU would get broader quota access under the proposed free trade agreement, covering about 68.4% of 2025 export volumes. The deal adds a preferential quota of 694,853 tonnes on top of the existing 946,616-tonne WTO quota, bringing the total to 1.64 million tonnes a year. Most of that access is for flat-steel products, especially hot-rolled sheets and strips. But the quota does not exempt Indian steel from the EU's Carbon Border Adjustment Mechanism. GTRI estimates the carbon levy could average around 35% of shipment value once fully phased in, while shipments above the quota face a 50% EU tariff. Indian producers are already asking for quotas 29-35% higher, saying the proposed access still leaves them in a weak position. The real challenge for exporters is not just market access, but the cost of cutting carbon intensity. CBAM means every tonne of steel needs verified emissions data, and competitiveness will increasingly depend on grid decarbonization and cleaner production methods.
