CBAM will affect steel exports from India much more than US tariffs – minister

The Indian steel industry will not feel a significant direct impact from US tariffs, but the European CBAM will affect exports of metal products from the country. This was stated by Steel Minister Sandeep Pundarik at the FT Live Energy Transition Summit India, Reuters reports.

Approximately two-thirds of Indian steel exports go to Europe, while shipments to the United States are insignificant. India has requested exemption from the cross-border carbon adjustment mechanism.

The Indian steel industry still predominantly uses the blast furnace-basic oxygen furnace (BF-BOF) production method, which has higher pollution or emission levels. In fact, new capacity additions are still using the BF-BOF method, which is a cause for concern. Against the backdrop of CBAM, the industry must take steps to address the issue, the official said.

India is still concerned about cheap imports. Sandeep Pundarik expressed hope that the government would decide on import tariffs (safeguard duties) in line with the proposed rate. In August, the country proposed an import tariff of 11%-12% on certain steel products to limit supplies from China.

According to The HinduBusinessLine, on the sidelines of the summit, the minister said that the government is working on a 5,000 crore rupee ($602 million) scheme to promote the adoption of clean steel production technologies. According to him, the initiative will cover all steel producers in the country, with 75-80% of the fund allocated to secondary players.

Poundrik added that the scheme is expected to be operational within the next few months.

It should be noted that India continues to implement green steel certification. As of the end of July 2025, 39 manufacturers in the metallurgical industry had already applied for the relevant certificates.