India is seeking to diversify its steel export markets toward the Middle East and Asia to mitigate the impact of the European Union’s Carbon Border Adjustment Mechanism (CBAM), which came into effect in early 2026 and has made exports to the EU more challenging. Europe accounts for roughly two-thirds of India’s steel exports.

A government source stated that India is actively pursuing trade agreements and exploring new market opportunities in infrastructure-driven economies across the Middle East and Asia to offset weaker shipments to Europe. Domestic steelmakers are also advocating for policy support measures to remain competitive in these markets, where Chinese steel producers maintain a strong presence.

India is simultaneously working to secure long-term supplies of key raw materials such as coking coal, limestone, and manganese through overseas investments and supply agreements in countries including Brazil, Argentina, Australia, and parts of the Middle East. This effort aims to strengthen its steel supply chain.