Sandeep Poundrik, federal secretary at India’s Ministry of Steel, stated that exports to the European market are expected to continue facing challenges in the coming period, adding that support for the sector is on the agenda.
The statement followed a trade agreement recently signed between India and the European Union that reduces customs tariffs across multiple sectors. While the agreement excludes the EU’s Carbon Border Adjustment Mechanism, it has reinforced expectations among Indian steel producers that pressure on exports will persist. Around 66% of India’s total steel exports are directed to Europe.
Speaking at a government event in New Delhi, Poundrik emphasized that exports will remain problematic due to the EU’s carbon regulations, tariffs, quotas and other trade barriers. Under these conditions, he noted that the government will need to take action to support the steel industry.
India has taken a critical stance from the outset toward the Carbon Border Adjustment Mechanism announced by the European Union in 2021, the first of its kind globally. Arguing that the new regulation will negatively affect steel trade, India has warned that the mechanism could disrupt trade balances. Under the regulatory framework that came into force in January, additional costs have begun to be imposed on imports of steel, cement and similar products whose production leads to high carbon emissions.
As a result of this measure, a decrease is expected in India’s steel exports to Europe. According to Reuters, this development is pushing Indian steel producers toward alternative markets such as Africa and the Middle East. The government aims for its supportive measures to accelerate exporters’ expansion into new markets.
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