India’s steel sector is likely to feel limited effects from U.S. tariffs, but exports to the European Union could be impacted due to the bloc’s carbon tax, according to India’s Steel Secretary Sandeep Poundrik.
He made the remarks on Wednesday at the FT Live Energy Transition Summit India, News.Az reports, citing Reuters.
Roughly two-thirds of India's steel exports go to Europe, while exports to the U.S. are negligible.
India has sought an exemption from the carbon border adjustment mechanism (CBAM), which could impose a higher tax on imports of high-carbon goods, including steel, aluminium and cement.
"The limits of carbon emission, which are proposed in CBAM, will definitely impact the exports," Poundrik said.
Indian steel is predominantly produced using blast furnaces, where emissions are high, Poundrik said, adding that further addition of blast furnace capacity is an area of concern.
Poundrik also said that India remains concerned about cheap imports and he expects the government to take a decision on the import tariffs, locally known as safeguard duty, in line with the proposed duty rate.
Last month, the country proposed a three-year import tariff of 11%-12% on some steel products to curb shipments from top producer China.
