India will support steel exports hit by Europe's carbon tax, federal secretary says.
Steel Secretary Sandeep Poundrik told a government event in New Delhi that exports will remain a problem and that the government will have to take action to help the sector.
The comments came days after India and the European Union signed a trade deal that slashed tariffs in several sectors but left the bloc's Carbon Border Adjustment Mechanism intact, Reuters reported.
Indian steel mills ship roughly two thirds of their total exports to Europe, making the industry particularly exposed to the EU's carbon levy as well as to tariffs, quotas and other challenges.
Impact And Industry Responses
Since January the EU regulatory framework has led to fees on imports of steel, cement and other goods whose production results in high levels of carbon emissions, the articles stated.
India has sharply criticised the world‑first CBAM policy since it was announced by the EU in 2021, and Reuters said Indian exports to Europe are expected to fall as a consequence.
The reporting added that mills are already seeking alternative buyers in Africa and the Middle East as producers and the government prepare to respond to lost European business.
