India will not receive a country-specific exemption from the EU’s Carbon Border Adjustment Mechanism (CBAM) for steel exports under the recently concluded India–EU Free Trade Agreement (FTA), Indian officials have confirmed.
However, officials emphasized that CBAM-related provisions remain open to future negotiations, noting that the agreement is a “live document” expected to take effect next year following legal review and ratification by EU member states.
India is seeking early access to the EU’s tariff-free steel quotas, potentially amounting to around 1.6 million metric tons per year, although this would be roughly half of India’s typical steel exports to Europe.
To support compliance, a dedicated technical group will assist Indian companies in verifying and documenting carbon emissions, alongside an EU-backed cooperation framework offering technical and financial support.
India’s Commerce Secretary Rajesh Agarwal stated that “CBAM is a horizontal regulation applicable to all trading partners”, adding that any flexibility granted by the EU to other countries in the future would automatically apply to India.
VietnamSteel by Hoa Sen Group
