India's steel industry runs predominantly on the BF-BOF route — the most carbon-intensive of the three main production methods. That has a direct, material effect on CBAM exposure.
Last verified: 02 September 2026
India's steel industry is expanding fast — and most of that new capacity is being built on the BF-BOF (Blast Furnace + Basic Oxygen Furnace) route, roughly 65% of newly-commissioned capacity per industry capacity data. The remaining share splits between EAF and induction-furnace (IF) routes.
This matters for CBAM specifically because production route is one of the single biggest drivers of embedded emissions per tonne of steel — far more than most other process variables.
Per worldsteel's own published industry averages, the difference between routes is large — not a marginal effect:
| Production route | Typical CO₂ intensity |
|---|---|
| BF-BOF (integrated) | ~2.32 tCO₂/t crude steel |
| Scrap-based EAF | ~0.3–0.67 tCO₂/t crude steel |
| Gas-based DRI-EAF | ~1.4 tCO₂/t crude steel |
These are industry-average figures for context, not CBAM default values. Your actual obligation depends on the specific CN code's Commission-published default value (EU IR 2025/2621) or your supplier's verified actual data — never substitute an industry average for either. See how default values actually work.
Given the BF-BOF-heavy mix, a default-value declaration on Indian steel is likely to land on the higher end of the CN code's default range, before the Article 7(3) markup is even applied. If a specific supplier genuinely runs a lower-carbon process — a scrap-heavy EAF operation, for instance — verified actual data can materially reduce the obligation compared to relying on the default.
Check the exact figures for your specific CN code and scenario with the default vs. actual calculator.
Roughly 65% of India's newly-commissioned steel capacity uses the BF-BOF (Blast Furnace + Basic Oxygen Furnace) route, per industry capacity data — the most carbon-intensive of the standard production routes.