India–Europe Free Trade Agreement Signals New Phase for Steel and Low-Carbon Growth

The conclusion of the India–European Union Free Trade Agreement marks a long-awaited milestone in bilateral economic relations and is being closely watched by the steel industry. Industry bodies believe the agreement will unlock new trade opportunities, improve market access and deepen cooperation in emerging areas such as low-carbon steel production.

The Indian Steel Association has described the agreement as a positive development for bilateral trade, particularly for steel exports. At present, India exports around three to four million tonnes of steel annually to the European Union, while EU exports to India remain significantly lower. With the FTA in place and periodic quota reviews expected, Indian producers are hopeful of securing higher allocations and improved access to the European market.

Beyond direct trade benefits, the agreement is also expected to widen overall economic engagement between India and the EU. Duty-free or concessional access for several sectors is likely to support manufacturing growth, infrastructure development and urban expansion, all of which drive domestic steel demand. Industry leaders believe this broader economic push could create a virtuous cycle for steel consumption.

A key highlight of the agreement is the renewed focus on sustainability. As global markets increasingly prioritise greener supply chains, cooperation in low-carbon steel has emerged as a strategic priority. The FTA is expected to facilitate technology exchange, policy alignment and investment flows that support cleaner production processes and lower emissions intensity in steelmaking.

The Indian Steel Association has emphasised that industry perspectives were represented during negotiations, helping ensure the agreement reflects sectoral realities. This consultative approach is expected to ease implementation challenges and align trade commitments with long-term industrial objectives.

As India expands its infrastructure pipeline and manufacturing base, the India–EU Free Trade Agreement is seen as a timely catalyst shaping the future trajectory of India’s steel sector and long term industrial competitiveness and global trade integration prospects ahead.