New German Low Emission Steel Standard Poses Challenges for Indian Industry

Germany's proposed Low Emission Steel Standard (LESS) threatens to challenge India's steel industry, which is already suffering from lower exports, higher imports, and Europe's carbon tax. The Global Trade Research Initiative (GTRI) warns that ignoring LESS could hurt domestic exports, urging Indian companies to adopt low-carbon technologies.

Germany's proposed Low Emission Steel Standard (LESS) is expected to introduce new challenges for the Indian steel industry, which is currently experiencing reduced exports, increased imports, and the impact of Europe's carbon tax, according to the think tank GTRI.

Indian steel exports have decreased by 31.2% from USD 31.7 billion in 2021-22 to USD 21.8 billion in 2023-24, while imports have risen by 37%, highlighting a shift to net imports. The Global Trade Research Initiative emphasized that while Indian companies are not legally obligated to follow the new German standards, ignoring them could hinder exports.

The voluntary LESS program classifies steel based on carbon emissions during production, a crucial factor as the steel industry accounts for 7% of global CO2 emissions. GTRI advised the Indian steel sector to adopt greener technologies and align with global efforts to stay competitive.

(With inputs from agencies.)