How the EU’s Carbon Tax Could Reshape India’s Export Landscape

The European Union's Carbon Border Adjustment Mechanism (CBAM), set to take effect in phases from 2026, presents a complex challenge for India. The tax targets imports of carbon-intensive products like steel, cement, and aluminum, aiming to combat climate change by penalizing high-emission imports. For India, a leading exporter to the EU, this policy could drive up compliance costs and disrupt trade flows.

To adapt, Indian industries must shift to greener technologies and align with global sustainability standards. The government is also contemplating  climate-resilient policies to mitigate long-term economic impacts.
Source: The Economic Times