Commerce and industry minister Piyush Goyal has strongly criticised the European Union’s proposed Carbon Border Adjustment Mechanism (CBAM), warning that India will impose retaliatory tariffs if the measure is implemented. Goyal labelled the carbon tax “very, very irrational,” and said it unjustly targets developing nations like India.
Potential Trade Impact and Rising Costs
CBAM proposes a carbon levy on imports such as steel, aluminium, and cement—potentially increasing costs by 20–35%. Goyal cautioned that this move could significantly disrupt Indian exports and strain economic ties with the EU. “If they put in a carbon tax… we will retaliate. It will hurt their own economy, and the retaliation will further hurt them,” he stated firmly.
Calls for Climate Equity and Technology Sharing
The minister emphasised the importance of equitable climate action, urging developed nations to share green technologies and provide financial support to help developing countries transition sustainably. He also noted a decline in the urgency of global climate dialogue, despite the rising threat posed by climate change.
India Registers Diplomatic Objections
India has raised its objections to CBAM through official channels during Goyal’s recent visits to London, Oslo, and Brussels. “We have conveyed our concerns clearly,” said a senior official, reinforcing India’s firm stance on defending its economic interests.
Firm Stand for Fair Trade and Climate Justice
India’s opposition to Carbon Border Adjustment Mechanism reflects its broader commitment to fair trade and climate equity. As reported by knnindia.co.in, while pushing back against unilateral carbon levies, India continues to deepen its strategic economic partnerships on the global stage.
