EU plans CBAM expansion, Indian exporters could face higher costs
The European Union is planning to expand its carbon border adjustment mechanism (CBAM) rules, and that could mean higher costs for Indian exporters, especially those sending steel, aluminum, and machinery to Europe.
Starting January 2028, around 180 more products could be hit with these measures, so Indian companies will need to step up their emissions tracking and green efforts if they want to stay competitive.
EU CBAM may include manufactured goods
Until now, CBAM has mostly targeted raw materials like iron and steel. But soon, it could cover a lot more manufactured goods: think metal parts, machinery components, and even aluminum containers.
Ajay Srivastava from GTRI says Indian exporters should get ready for stricter rules on carbon emissions if they want to keep trading smoothly with the EU.