India is looking for new steel export markets in the Middle East and Asia to balance the effects of the European Union’s carbon tax, which began in January, according to a Reuters report citing a government source.
The country is the world’s second-largest producer of crude steel, and approximately two-thirds of its steel exports go to Europe. However, these exports have faced challenges due to the EU’s Carbon Border Adjustment Mechanism.
Last week, Steel Secretary Sandeep Poundrik said that the government needs to act to support exports affected by Europe’s carbon tax, the report said.
“For exports, we are looking at new markets, and we are trying to get agreements with countries in the Middle East where a lot of infrastructure is coming up, and also in Asia,” a person directly engaged in decision-making told the news portal, declining to be identified as the considerations are confidential.
“Till now, our exports were focused on Europe, but we are trying to diversify,” the person added.
The Ministry of Steel did not share any official response on the development. Livemint could not independently verify the report.
Mills are expecting government support to help them compete in non-EU markets where China is dominant, a senior executive at a major steel firm told the news portal.
Since 2023, China’s steel exports, the largest globally, have remained resilient and reached a record high in December. Beijing plans to implement a licensing system this year to regulate alloy exports, as strong shipments have sparked increased protectionist sentiments across the globe.
Efforts to secure raw material
Highlighting India’s growing efforts to secure supplies of raw materials such as coking coal, limestone, manganese, and other critical minerals, a person familiar with the development told the news portal that New Delhi was increasingly pursuing long-term offtake agreements and asset acquisitions.
State-run Steel Authority of India (SAIL) and miner NMDC are exploring opportunities in Brazil, Argentina, Australia, and the Middle East, the report said.
SAIL and NMDC did not share any official information on the development.
“For coking coal asset acquisition, we are looking at Australia,” the person said.
At present, approximately 95% of the sector’s coking coal needs are met through imports, with Australia providing more than half. In 2025, NMDC said it was looking for coking coal assets in Indonesia and Australia.