India’s finished steel exports grew by 21.6% YoY in H1 FY2026, indicating a short-term rebound, supported by higher domestic production. However, the external environment remains challenging, impacted by tariff barriers and sustained competitive pressure from Chinese mills in key export destinations such as Europe, West Asia, and Southeast Asia. 

Furthermore, Europe’s reduction in steel import quotas, higher out-of-quota tariffs and the rollout of Carbon Border Adjustment Mechanism (CBAM) from January 2026 are likely to constrain India’s export prospects in the coming fiscal.

Exhibit: Trend in annual finished steel exports from India

Source: JPC, ICRA Research