 "India-EU FTA, Free trade, European Union, India trade policy")
The Carbon Border Adjustment Mechanism (CBAM) of the European Union (EU) was notified primarily to prevent carbon leakage and provide a level playing field for domestic (European) producers. Initially, the most energy-intensive sectors — such as iron and steel, aluminium, cement, fertilisers, electricity, and hydrogen — have been covered by the scheme. Other sectors will be included over time. The CBAM will become operational from January 2026.
The EU is India’s second-largest export market. India exported $70 billion worth of merchandise to the EU in 2023, out of which CBAM-covered commodities were worth $7.3 billion, amounting to 10.5 per cent
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