The EU's Carbon Border Adjustment Mechanism enforces carbon taxes on specific imports. This challenges India’s carbon-intensive sectors like steel and aluminium. India must leverage FTAs, develop domestic carbon pricing, and transition to green technologies to ensure global competitiveness.
Click to View MoreIndia and the EU are moving toward a landmark FTA to expand trade, diversify supply chains, and boost investment. Talks still face hurdles over market access, CBAM, IPR, and data issues. Pragmatic negotiations, use of the Trade and Technology Council, and strong political will are key to a balanced deal.
Click to View MoreThe EU’s CBAM from January 2026 will tax carbon-intensive Indian exports, citing carbon leakage. India sees it as protectionist and against CBDR, hurting MSMEs. India plans a WTO challenge while building a domestic carbon market to retain revenue and drive its green transition.
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