EU steel quota opens 2.8 million tonnes export window for India

India secures 1.9 mt country-specific quota as EU steel safeguard regime imposes 50% tariff beyond duty-free limits

The government’s “initial conservative estimates” suggest India’s annual steel exports to the European Union (EU) may stand at 2.8 million tonnes (mt), a commerce ministry official said, adding that New Delhi has secured 1.9 mt under the country-specific quota, with the rest likely to be under the residual quota.

India has been able to secure the quota on the basis of the free trade agreement (FTA) that the two sides concluded in January, the official said. “Even though the FTA is yet to be signed and enforced, the implementation of steel quota commitments has been front-loaded and effective from July 1.”

The EU’s safeguard regime for steel, which came into effect on July 1, provides tariff-rate quotas (TRQs) for shipments. Steel imports within the TRQ attract zero duty in the EU, while imports above the quota are subject to a 50 per cent tariff. The EU’s total annual duty-free steel quota limit stands at 18.3 mt.

India exported 3.8 mt of steel worth $3.4 billion to the EU in 2025-26, according to data available with the Department of Commerce.

Within the EU’s TRQ for steel, there are two categories: country-specific quota and residual quota. Under the country-specific quota, India has secured steel shipments of 1.9 mt, which includes 950,000 tonnes under the FTA partner quota and the rest under the most-favoured nation quota, the official said.