India-EU FTA Sets 1.64 Million-Tonne Steel Quota, Including 6.95 Lakh Tonnes Under FTA

India is to get an annual country-specific tariff-rate quota (TRQ) of 1,641,470 tonnes for steel exports to the European Union, according to a MoneyControl news report citing the draft text of the India-EU trade pact. 

The allocation includes 946,616 tonnes under the Most Favoured Nation (MFN) component and 694,853 tonnes under the FTA component. 

Steel Products Covered 

The quotas cover several steel products, including non-alloy and alloy hot-rolled sheets and strips, cold-rolled sheets, metallic- and organic-coated sheets, tin mill products and stainless steel products. 

They also include merchant bars and light sections, rebars, wire rods, pipes and tubes. India currently exports about 4 million tonnes of steel a year to the EU. 

Hot-Rolled Sheets Get Biggest Share 

The largest country-specific quota is for non-alloy and other alloy hot-rolled sheets and strips at 509,605 tonnes. 

Of this, 299,197 tonnes are under the MFN component and 210,408 tonnes under the FTA component. 

Quotas for Other Steel Categories 

Cold-rolled sheets have a total quota of 218,658 tonnes, while metallic-coated sheets have 197,860 tonnes. 

The allocation for organic-coated sheets is 186,038 tonnes, followed by 181,835 tonnes for non-alloy and other alloy quarto plates. 

Another metallic-coated sheet category has a quota of 85,157 tonnes, while stainless steel bars and light sections have 79,278 tonnes. 

EU Steel Regulation 

The TRQs are linked to the EU's Steel Overcapacity Regulation, which came into force on 1 July 2026. The regulation provides for 18.3 million tonnes of steel imports at zero duty. 

Imports above the quota will face a 50% duty. The rules also include a melt-and-pour requirement aimed at providing greater clarity on the origin of steel. 

Rules for Indian Imports 

Steel imported from India outside the specified quotas will attract the applicable base-rate duties under the EU's tariff commitments. 

The TRQs for Indian steel products will apply from the date the EU Steel Regulation starts applying. 

Additional Quota Access 

India will also be able to compete for additional quota volumes in categories where it has a country-specific quota. These volumes will be allocated among EU FTA partners with country-specific quotas. 

For categories without an India-specific quota, exporters will have access to residual quotas, including general and preferential quotas. 

Review of Allocations 

The EU will administer the quotas on a transparent, objective, and non-discriminatory basis and publish relevant information on their administration. 

The first review will begin one year after the FTA comes into force, followed by reviews every five years. India and the EU concluded negotiations on 27 January, with signing expected later this year and implementation likely next year. 

Read More: BRICS Business Forum 2026: Piyush Goyal Seeks Open Markets, Fewer Trade Barriers and Payment System Links! 

Conclusion  

The proposed pact sets India’s annual country-specific steel quota at 1.64 million tonnes, with 6.95 lakh tonnes allocated under the FTA component. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.