India's government will support steel exports impacted by the European Union's carbon border tax, federal Steel Secretary Sandeep Poundrik announced. The carbon tax continues to challenge Indian steel producers despite recent trade deals between the two regions.

Indian steel mills send roughly two thirds of their total exports to Europe, leaving the sector vulnerable to the Carbon Border Adjustment Mechanism. The government will take action as export challenges persist following the implementation of the EU's regulatory framework in January.

Steel exports to Europe are expected to decline, prompting mills to seek alternative buyers in Africa and the Middle East. India has criticized the world-first CBAM policy since its announcement in 2021, claiming the levy could hamper trade in steel and other carbon-intensive goods.

Quick Fact: Indian steel mills ship roughly two thirds of their total exports to Europe.