Industry Odisha , Sep 13:
India will get country-specific steel quotas worth 1.64 million tonnes yearly. Of this, 6.94 lakh tonnes falls under the India-EU FTA. The rest comes via MFN terms.
India-EU FTA Creates Steel Quota Framework
India will receive country-specific tariff-rate quotas totalling 16,41,470 tonnes annually. This access covers steel exports to the European Union. Of the total, 6,94,853 tonnes falls under the FTA component. Another 9,46,616 tonnes comes through the MFN component. The figures appear in the EU’s draft agreement text. India currently exports around four million tonnes of steel yearly to the EU. The quota framework defines specific market access, not total export capacity.
EU Steel Regulation Shapes Market Access
The quotas operate alongside the EU’s Steel Overcapacity Regulation. That regulation took effect on July 1, 2026. It aims to protect the EU steel industry from global overcapacity. The framework sets free-of-duty quotas at 18.3 million tonnes. Out-of-quota imports face a 50% duty. A melt-and-pour regime is also included, to improve transparency. Indian steel outside relevant quotas faces applicable base-rate duties.
Hot-Rolled Steel Gets Largest Allocation
Non-alloy and other alloy hot-rolled sheets and strips receive the largest quota. Their total allocation is 5,09,605 tonnes. This includes 2,99,197 tonnes under MFN and 2,10,408 tonnes under FTA terms. Cold-rolled sheets receive 2,18,658 tonnes. Metallic-coated sheets receive 1,97,860 tonnes. Organic-coated sheets get 1,86,038 tonnes, and quarto plates receive 1,81,835 tonnes. Other categories cover rebars, wire rods, pipes and tubes.
Indian Exporters Could Access Additional Quotas
India could access additional volumes in categories with country-specific quotas. These would be allocated through competition among eligible EU FTA partners. India may also access residual quotas in categories lacking country-specific allocations. These include general residual quotas and preferential quotas for FTA partners. None of these additional volumes are guaranteed.
India-EU Steel Quotas Face Periodic Review
The draft text requires transparent, objective quota administration by the EU. Relevant administrative information must be made publicly available promptly. The first quota review will begin one year after the FTA takes effect. Subsequent reviews will follow every five years. If the EU amends relevant Product Specific Rules, it must consult India.
FTA Signing and Implementation
India and the EU concluded negotiations on January 27. The pact is expected to be signed by year-end. Implementation is likely to follow next year, according to the report. The quota system is therefore not yet operational.
The arrangement gives Indian steel exporters defined preferential access within a tightly regulated European market. Its practical benefit will depend on implementation timelines and how effectively exporters utilise the allocated quotas.
