The halved quota for duty-free imports and 50% tariff on imports past that proposed by the European Fee threaten to render Indian metal exports to the widespread market uncompetitive, analysts and business representatives mentioned.
“This (larger metal duties and lowered quota) must be the central level of the EU-India FTA talks,” Pankaj Chadha, chairman of the Engineering Export Promotion Council, instructed ET. The EU metal duties are a much bigger problem than the US tariffs since Indian metal exporters have “an enormous publicity to the European market”, he mentioned.
This fiscal yr, India exported 1.06 million tonnes of metal to the EU until August, accounting for roughly 47% of its complete shipments of the alloy. Italy, Belgium and Spain are among the many high 5 export locations for Indian metal.
In keeping with Vinayak Vipul, companion, Metals & Mining at EY Parthenon, the upper tariffs and the Carbon Border Adjustment Mechanism (CBAM), which is anticipated to turn out to be in pressure from January 1, might be a double whammy for Indian steel exporters.
“Mixed affect of a 50% tariff and CBAM is anticipated to extend the landed price of Indian metal to Europe by over 60%, lowering its competitiveness in opposition to regional producers,” he mentioned.As a part of the proposal, the quota for duty-free metal imports into the EU will fall to 18.3 million tonnes a yr, 47% decrease than the present quota. It's unclear how a lot of this might be earmarked for India.Sector watchers say there's a want to search out new markets, else there might be a fall in Indian metal exports. “Newer markets throughout Asia, Africa and Latin America might be key to diversifying commerce. On the identical time, steady engagement with EU stakeholders stays vital,” mentioned Rajib Maitra, companion, Deloitte India.
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