India secures 2.8 million tonne steel quota for EU exports

India has secured a country-specific tariff-rate quota of 1.9 million tonnes annually for steel exports to the European Union, with government officials confident that exporters will claim an additional 0.9 million tonnes through residual quota allocations, bringing the combined total to 2.8 million tonnes. A commerce ministry official confirmed the development on Thursday.

The allocation represents substantial coverage of India's steel export requirements to the EU, representing over 80 per cent of the approximately 3 million tonnes shipped to the bloc in the previous fiscal year. Indian exporters have already begun utilising the quota since the mechanism took effect on July 1, with shipments to EU member states now underway.

The tariff-rate quotas operate under the EU's Steel Overcapacity Regulation, a protectionist framework designed to shield the European steel industry from global oversupply pressures. The regulation establishes a total duty-free quota pool of 18.3 million tonnes across all trading partners, with out-of-quota imports subject to a 50 per cent tariff. The framework also incorporates a melt-and-pour regime intended to enhance transparency in steel trade flows.

The quota allocation follows mounting global trade tensions over steel supply and demand imbalances. India's secured quota ensures Indian steelmakers have guaranteed tariff-free market access, providing stability for export planning and pricing strategies in the competitive EU market.