India secures EU steel quota, seafood and shipbreaking concessions ahead of FTA

India has secured significant concessions in the EU's upcoming free trade agreement (FTA) ahead of the deal's anticipated signing in December. The concessions cover steel, fisheries, and shipping sectors. Some benefits have already begun, with increased steel export quotas taking effect on July 1. India's steel exports to the EU will be allowed duty-free under the new quota system, which mandates a 50% duty on imports exceeding the EU's 18.3 million tonne (mt) quota.

India has obtained a quota allowing it to export approximately 2.8 million tonnes of steel to the EU annually, representing over 93% of its usual 3 million tonne annual supply to the bloc. The EU, comprising 27 countries and an economy of roughly $23 trillion, is a major market for Indian goods.

Beyond steel, the FTA outlines non-tariff benefits, including approval for 625 Indian fishery establishments to export shrimp and seafood to the EU. The EU has also granted shipbreaking rights in India, a leading shipbreaker globally, with a 30% market share. This concession extends to two ship recycling yards in Gujarat.

India's FTA negotiations have been swift, with legal finalization and approval processes expediting. The European Council is expected to approve the agreement soon, with the deal potentially coming into force by early 2027 after the EU Parliament ratifies it. The FTA negotiation process is also aiding India's alignment with the EU's carbon measurement and reporting practices, which could set a precedent for the EU's Carbon Border Adjustment Mechanism (CBAM).