India Retains 80% of Steel Exports to EU via FTA Front-Loading, Quota at 19 Lakh Tonnes

EU Commission Proposes India FTA to Council: 96% Tariff Cut on Goods, €4B Annual Savings

The European Commission has forwarded the India-EU Free Trade Agreement (FTA) to the European Council for final approval. This landmark deal will eliminate tariffs on 96% of EU goods exports to India, save €4 billion annually in duties, and unlock market access for 99% of Indian exports, while reducing dependence on China-centric supply chains.

India-EU FTA: Additional Preferential Steel Quota of 694,853 Tons, but CBCT Levy Applies

India secured an additional preferential steel export quota of 694,853 tons to the EU under the India-EU FTA, raising the total quota to 1.64 million tons. However, Indian steel remains subject to the EU's Carbon Border Adjustment Mechanism (CBAM), which could add costs equivalent to ~35% of value. This is a crucial trade-off for aspirants: market access vs. carbon compliance.

EU CBAM: Carbon Border Tax on Steel Imports to Cost India €190/Tonne from Feb 2027

The EU has implemented the Carbon Border Adjustment Mechanism (CBAM), a carbon tax on imports of steel, aluminium, cement, fertilisers, hydrogen, and electricity. For India, this is primarily a steel tax—$5.4 billion of its $6.3 billion CBAM-exposed exports to the EU in 2024 were iron and steel. With Indian steel emitting 2.54 tonnes of CO2 per tonne (vs. world avg. 1.9), the tax could cut exports by 24%, and BRICS has formally opposed it as protectionist in the New Delhi Declaration.

India-EU FTA Signed Dec 16, 2026: 'Mother of All Deals' After 4-Year Talks

India and the EU will sign their landmark Free Trade Agreement (FTA) on December 16, 2026, capping negotiations that restarted in June 2022. The deal, dubbed the 'mother of all deals', has majority approval in Europe, bypassing individual country ratifications. This is part of PM Modi's December diplomatic blitz covering FTAs with Canada, the US, and the EU.

European Commission Proposes India-EU FTA Approval: 96% Tariff Cut, €4 Billion Annual Savings

The European Commission has forwarded the India-EU FTA to the European Council for approval — the final stage before formal signing. If authorised, the deal will eliminate or reduce tariffs on 96% of EU goods exports to India, save about €4 billion annually in duties, and become the largest trade agreement ever concluded by both sides.

India-EU FTA: Steel Quota 1.64 MT, EU Car Imports May Rise Sixfold to 1 Lakh Units

India and the EU are close to finalizing a landmark Free Trade Agreement (FTA). India has secured a 1.64 million tonne steel export quota to the EU, while the EU wins a massive tariff-rate quota for car imports, potentially increasing EU car imports into India sixfold. This deal has major implications for India's steel industry, its auto sector, and its trade relations with other partners.

US Imposes 100% Tariff on India Pharma Exports from 2028, Impact on $150 Bn Trade

Trump's unilateral tariff actions on Indian pharmaceutical exports (100% from 2028, rising to 200%) and use of Sections 301, 232, and 338 expose the fragility of ongoing India-US trade negotiations. Despite $150 billion bilateral trade and India's surplus, no signed agreement seems safe. India should prioritize trade diversification towards the UK and EU.

EU AI Act: High-Risk Compliance Deadline Extended to Dec 2027; India Seeks Opportunity

The EU AI Act, applicable from August 2, 2026, creates a risk-based regulatory framework for AI. While Indian firms face compliance challenges due to the Act's treatment of post-approval updates, India can build a services industry around the required paperwork and, via the India-EU Free Trade Agreement, become a recognised participant in the EU's conformity assessment ecosystem.