India has included dedicated provisions in the proposed Free Trade Agreement (FTA) with the European Union to address concerns related to the EU’s Carbon Border Adjustment Mechanism (CBAM). The Centre said the agreement contains a structured work plan aimed at helping Indian exporters, particularly MSMEs, adapt to the EU’s carbon compliance requirements.
Officials stated that CBAM was a key issue during negotiations, and both sides agreed to create a mechanism for technical cooperation and smoother implementation. The framework is expected to reduce trade disruptions while strengthening India's long-term access to the European market under evolving environmental regulations.
Reference: Financial Express