New EU Steel Quotas May Cut India’s Exports By 40%: EEPC India

New Delhi, Jul 2 (KNN) India's iron and steel exports to the European Union (EU) could fall by approximately 40 per cent under the bloc's new country-specific steel import quota regime, translating into an estimated annual export loss of around USD 1.36 billion, industry body EEPC India said, following the European Commission's release of tariff-rate quota allocations on 30 June.

The revised safeguard regime, which took effect on 1 July, cuts the EU's overall tariff-free steel import quota by 47 per cent to 18.3 million tonnes per year and doubles the safeguard duty on shipments exceeding the quota to 50 per cent from 25 per cent previously. 

The development comes after India's iron and steel exports to the EU grew nearly 12 per cent in FY26 to USD 3.41 billion, up from USD 3.05 billion in FY25.

India Secures Exclusive Quotas in Only Two Categories

Under the country-specific allocations, India secured exclusive quotas in only two product categories — 92,556.8 tonnes for Category 14 (stainless bars and light sections) and 15,328.5 tonnes for Category 22 (other seamless tubes). In Category 15 (stainless wire rod), India does not hold an exclusive country allocation but is eligible to draw from the quota reserved for EU free trade agreement partners.

Pankaj Chadha, Chairman of EEPC India, described the new allocations as “a mixed bag,” noting that India had secured relatively better access in Categories 14, 15, and 22, with “higher quotas for some MSME-based items,” reported Moneycontrol.

"Annual exports of iron and steel to the EU will fall by at least 40 percent, in the items where we haven't got higher quotas," Chadha said.

However, most other product categories either received no additional quota or saw reductions broadly in line with the EU's overall 47 per cent cut.

Once country-specific quotas are exhausted, Indian steel shipments will attract a 50 per cent safeguard duty, rendering exports in many product categories significantly less competitive in the European market.

(KNN Bureau)