About two-thirds of India's steel exports go to Europe, while exports to the United States are negligible, he said.India is seeking exemption from the EU's Carbon Boundary Adjustment Mechanism (CBAM), which could impose a higher tax on imports of high-carbon goods, including steel, aluminum and cement.
"The carbon restrictions that are proposed in CBAM will definitely affect exports," Poundrick said.
Indian steel is predominantly produced using blast furnaces, where emissions are high, Poundrick said, adding that further increasing blast furnace capacity is a challenge.
Poundrick also said India remains concerned about cheap imports and he expects the government to decide on import tariffs, known locally as protective duties, in line with the proposed duty rate.
CBAM is designed to impose a carbon price on imports from countries with lower environmental standards, initially covering iron and steel, aluminum, cement, fertilizers, electricity, and hydrogen. This is expected to be fully implemented in 2026.
The domestic steel sector accounts for 12 percent of India's greenhouse gas emissions, according to official data.
