Economic Survey flags EU’s carbon tax as trade barrier that could hit India’s exports
1 month, 3 weeks ago

Economic Survey flags EU’s carbon tax as trade barrier that could hit India’s exports

Live Mint  

New Delhi: The Economic Survey 2024-25 has raised concerns about the European Union’s Carbon Border Adjustment Mechanism, calling it a restrictive trade policy that could threaten India’s exports and widen the current account deficit. Released by finance minister Nirmala Sitharaman in Parliament on Friday, the survey noted that while the EU has positioned CBAM as an environmental safeguard against carbon leakage, the so-called ‘carbon tax’ posed significant risks to India’s trade prospects. Highlighting broader external sector trends, the survey questioned whether India’s sustainable current account deficit might be lower than earlier estimated, which would have implications for capital formation and investment efficiency. The survey asserted that despite increasing trade barriers, India has the potential to expand its share in global markets, provided it strengthens its trade competitiveness and capital formation.

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History of this topic

Tariff-proofing India’s exports
1 week ago

Tariff-proofing India’s exports

Hindustan Times  

The tariff turmoil from the United States is emerging as the biggest ‘known unknown’ for the global economy in 2025. Indian economy For some time now, the relative stability of the World Trade Organization -refereed trade regime has cultivated a wide-spread complacency with global trade ballooning nearly five times since the creation of WTO. The long entrenchment in stable global …

Why India is at the centre of global trade talks
2 weeks ago

Why India is at the centre of global trade talks

Firstpost  

The post-pandemic world has seen the resurgence of economic nationalism, reshoring of supply chains, and increasing scepticism toward multilateral trade frameworks In 1860, Richard Cobden and Michel Chevalier brokered what became a landmark trade agreement between Britain and France, known as the Cobden-Chevalier Treaty. The post-pandemic world has seen the resurgence of economic nationalism, reshoring of supply chains, and increasing …

India's exports under pressure as US and EU tighten trade policies
3 weeks, 2 days ago

India's exports under pressure as US and EU tighten trade policies

India Today  

India’s exports are facing heightened challenges owing to aggressive trade policies from partners like the US and the European Union, said a senior trade ministry official on Tuesday, reported Reuters. Santosh Sarangi, head of the Directorate General of Foreign Trade, pointed to the increased import tariffs by the US and policies like the CHIPS Act, which support local manufacturing. He …

India must keep its strategic options open as Trump’s tariffs kick in
3 weeks, 3 days ago

India must keep its strategic options open as Trump’s tariffs kick in

Live Mint  

The recent wave of tariff announcements by the Trump administration in the US marks a significant shift in global trade dynamics. Substantial corporate-tax cuts and broad deregulation, both of which are on Trump’s agenda, could potentially stimulate US economic growth, though these benefits may take longer to materialize compared to the more immediate negative effects of tariffs on consumption and …

India needs tariff cuts, reforms to boost investments: World Bank
3 weeks, 6 days ago

India needs tariff cuts, reforms to boost investments: World Bank

India Today  

India must lower import tariffs and introduce regulatory reforms to attract more foreign investment, according to a World Bank report released on Friday. "Relatively high import tariffs, especially on intermediate and capital goods, and significant non-tariff barriers contribute to high trade costs which inhibit greater openness in terms of imports and exports as well as fuller participation in global value …

EU may not offer concessions to India for CBAM and Deforestation Regulation: Report
1 month ago

EU may not offer concessions to India for CBAM and Deforestation Regulation: Report

Hindustan Times  

The European Union has hinted that India is unlikely to get relaxations when it comes to the union's carbon-border levy and deforestation regulation, according to a Business Standard report. The report quoted an unnamed senior trade-bloc official as saying that India’s concerns on the Carbon-Border Adjustment Mechanism are “illegitimate,” but that the bloc is ready to address them. The Carbon-Border …

EU ready to address ‘specific concerns’ of India on carbon tax levy on imports
1 month ago

EU ready to address ‘specific concerns’ of India on carbon tax levy on imports

The Hindu  

The European Union has acknowledged India’s “specific concerns” about implementing the Carbon Border Adjustment Mechanism — the bloc’s tool to levy taxes on imports of certain carbon-intensive goods from early next year — and is ready to address them. It added that India’s metal sector would be particularly affected by the tax in the first phase of CBAM application and …

India should double down on climate action in the face of Trump’s policy rollback
1 month, 2 weeks ago

India should double down on climate action in the face of Trump’s policy rollback

Live Mint  

As Donald Trump begins his second term as US president, the world is bracing for a dramatic shift in US climate policy. To counteract volatility, India must strengthen intra-regional trade in carbon credits, aligning with overseas partners like the EU, Japan and Australia—economies that remain committed to climate goals despite the US withdrawal. India, in a bid to become a …

Budget 2025: New export promotion mission aims to boost growth and narrow trade deficit
1 month, 3 weeks ago

Budget 2025: New export promotion mission aims to boost growth and narrow trade deficit

Live Mint  

Finance minister Nirmala Sitharaman on Saturday, 1 February, unveiled an Export Promotion Mission, spearheaded by the ministries of commerce, finance, and micro, small, and medium enterprises, to position exports as a key driver of economic growth. Part of the budget announcements for 2025-26, the initiative aims to narrow India’s trade deficit, which hit a record $32.8 billion in November 2024. …

​A pragmatic picture: On the Economic Survey 2024-25
Trending News
1 month, 3 weeks ago

​A pragmatic picture: On the Economic Survey 2024-25

The Hindu  

Parliament’s Budget session has begun amid a significantly changed backdrop. India’s growth is seen faltering after four years of healthy post-pandemic growth, the stock markets are tumbling, the rupee is losing ground faster than expected, and the major drivers that have been spurring the economy — domestic demand and public sector capex — are sputtering, while private investments remain insipid. …

Economic Survey flags growing challenges in global trade
1 month, 3 weeks ago

Economic Survey flags growing challenges in global trade

The Hindu  

Steady growth of exports — merchandise and services — in the first nine months of FY 25 to touch $ 602.6 billion indicates India’s resilience in the midst of global headwinds of economic and trade policy uncertainties, said the Economic Survey 2024-2025. “The evolving global trade dynamics, marked by gradual shifts towards greater protectionism, require assessing the situation and developing …

Economic Survey flags concerns about sustainable level of CAD for India
1 month, 3 weeks ago

Economic Survey flags concerns about sustainable level of CAD for India

Live Mint  

The Economic Survey raised concerns about the sustainable level of current account deficit for India. “If, for various reasons, capital flows are going to be problematic, it raises questions as to the level of sustainable CAD for India,” the survey said. “It may not be 2.5 per cent to 3 per cent as before, but it is much lower.” India’s …

Economic Survey 2025: Major global challenges faced by Indian economy
1 month, 3 weeks ago

Economic Survey 2025: Major global challenges faced by Indian economy

Live Mint  

The Economic Survey, released on Friday, January 31, indicated that India's export growth and manufacturing would face challenges due to global economic uncertainties, particularly in Europe and China. Additionally, major global challenges such as the Russia-Ukraine conflict, Israel-Hamas war, cyberattacks, and geopolitical risks around trade policies have also impacted the Indian economy, stated the Economic Survey. Economic Survey 2025: Major …

Survey may address tough economic questions
1 month, 3 weeks ago

Survey may address tough economic questions

New Indian Express  

She says the country does not have a comprehensive document yet on the analytical framework and the road map towards Viksit Bharat 2047, and she hopes this Economic Survey will present that comprehensive framework and the significant components of our ‘graduation dreams’ towards a developed country by 2047. Last year, the survey had famously raised the issue of threat of …

India, EU lay roadmap to strengthen trade and investment
2 months, 1 week ago

India, EU lay roadmap to strengthen trade and investment

Live Mint  

New Delhi: Commerce and industry minister Piyush Goyal and European commissioner for trade and economic security Maroš Šefčovič discussed mutually beneficial trade and investments, and plan to expedite the free-trade agreement during their first in-person meeting in Brussels on 18-19 January. During the 9th round of talks, India and the EU discussed a 12-point agenda, which included deforestation, electric vehicles, …

What is CBAM and its impact on Indian exports and sustainability
2 months, 1 week ago

What is CBAM and its impact on Indian exports and sustainability

India Today  

As the European Union prepares to implement its Carbon Border Adjustment Mechanism in January 2026, Indian export industries are set to undergo a significant transformation. Additionally, the need to purchase carbon certificates for emissions embedded in products may lead to higher production costs, making Indian goods less competitive in the EU market. The implementation of CBAM could reshape global supply …

A divided EU gives India a window to pitch for carbon tax relief
2 months, 3 weeks ago

A divided EU gives India a window to pitch for carbon tax relief

Live Mint  

Differences within the European Union over the looming carbon border tax has given India an opportunity to pitch for some relief from its onerous requirements that are expected to hurt exports to one of the country’s largest trading partners. Besides, in the upcoming free-trade agreement talks with the bloc, India will seek easier norms to protect the economic interests of …

Indian manufacturing must adapt to constant flux in a dynamic world
3 months, 1 week ago

Indian manufacturing must adapt to constant flux in a dynamic world

Live Mint  

The global economic landscape is becoming increasingly interlinked and dynamic. Despite multiple shifts, 2023 saw global merchandise exports worth over $24 trillion, an increase of 6% over 2019, demonstrating resilience in the face of disruptions. Focused reforms since then, including the production-linked incentive schemes and ‘Make in India’ initiative, combined with infrastructure development programmes, trade agreements and stronger participation in …

India has to brace up in future to deal with non-tariff, potential duty measures: Official
3 months, 1 week ago

India has to brace up in future to deal with non-tariff, potential duty measures: Official

Live Mint  

New Delhi, Dec 18 India will have to prepare itself in future to deal with issues like non-tariff and unilateral duty-related barriers like the EU carbon tax, a senior government official said on Wednesday. Director General of Foreign Trade Santosh Kumar Sarangi said that countries like the US and the European Union are trying to boost their domestic manufacturing through …

India achieves limited success in capturing ’China Plus One strategy’ so far: Niti Aayog report
3 months, 3 weeks ago

India achieves limited success in capturing ’China Plus One strategy’ so far: Niti Aayog report

Live Mint  

New Delhi, Dec 4 India has seen limited success so far in capturing the 'China Plus One strategy', while Vietnam, Thailand, Cambodia, and Malaysia have become bigger beneficiaries, according to a report of government think tank Niti Aayog. "However, India has seen limited success so far in capturing the China Plus One strategy so far," said the report - 'Trade …

India, EU gear up for 10th round of FTA negotiations
4 months ago

India, EU gear up for 10th round of FTA negotiations

Hindustan Times  

Fresh momentum in India-European Union free trade negotiations has emerged against the backdrop of global uncertainties and shifting geopolitical equations after the US presidential elections, as top negotiators from both sides met in Brussels recently to prepare for the 10th round of talks. India, EU gear up for 10th round of FTA negotiations The 27-member European bloc sees India, with …

Trump’s policies may open new doors for India’s defence sector: Report
Trending News
4 months ago

Trump’s policies may open new doors for India’s defence sector: Report

Live Mint  

New Delhi, November 25 : The "America First" trade policy promoted by upcoming U.S. President Donald Trump has far-reaching implications for global trade and geopolitics. It said "Indian businesses in sectors such as pharmaceuticals and defense might also find new opportunities, especially if U.S.- India collaboration strengthens. The report said "increased tariffs might prompt retaliatory measures from trade partners, potentially …

India-UK trade talks to focus on key tariff barriers and emerging sectors
4 months, 1 week ago

India-UK trade talks to focus on key tariff barriers and emerging sectors

Live Mint  

The India-UK free trade agreement talks that are set to resume in early 2025 will focus on a range of critical areas including market access, regulatory frameworks, and tariff barriers. A successful FTA would facilitate increased trade across sectors like technology, agriculture, and manufacturing, while also deepening diplomatic ties, said Abhash Kumar, assistant professor of economics at Delhi University. India …

Streamlining India's Carbon Credit Market: A Crucial Step for a Sustainable Future
5 months ago

Streamlining India's Carbon Credit Market: A Crucial Step for a Sustainable Future

Hindustan Times  

India's carbon credit market faces challenges such as a lack of a central authority to oversee regulations, inconsistent verification processes, and high costs. To address these challenges, the government should establish a streamlined, centralized authority to oversee the market, develop clear and comprehensive regulations, align with international standards, and invest in training programs to equip stakeholders with the necessary skills. …

India's Economic Potential Soars as Global Landscape Shifts
Trending News
5 months ago

India's Economic Potential Soars as Global Landscape Shifts

The Hindu  

India is well positioned to capitalize on new growth opportunities due to its robust macroeconomic fundamentals and strategic shift towards strategic economic partnerships. The country's focus on domestic capacity building and resilience against external shocks will be key to its success. Ms. Sitharaman emphasized India's potential to become a key partner for many countries seeking to diversify their sources of …

Establishing a carbon market
6 months, 3 weeks ago

Establishing a carbon market

The Hindu  

In her Budget speech, the Finance Minister signalled that polluting industries, such as iron, steel, and aluminium, will have to conform to emission targets. PAT versus emissions trading The Bureau of Energy Efficiency defines PAT as a “regulatory instrument to reduce specific energy consumption in energy-intensive industries, with an associated market based-mechanism to enhance the cost effectiveness through certification of …

In India's FTA talks with EU, sustainability a key issue
7 months ago

In India's FTA talks with EU, sustainability a key issue

Hindustan Times  

New Delhi: The European Union ’s insistence on sustainability measures such as deforestation rules and carbon tax on imports of steel, cement and hydrogen are akin to non-tariff barriers that can impede ongoing free trade negotiations with India, people aware of the development said. The next round of talks for the proposed India-EU free trade agreement is scheduled for September …

EU suggests India implement own carbon tax mechanism, says minister Goyal
7 months, 3 weeks ago

EU suggests India implement own carbon tax mechanism, says minister Goyal

Live Mint  

New Delhi: Amid ongoing free trade agreement negotiations, the European Union has suggested that India create its own carbon tax mechanism instead of paying into the EU's Carbon Border Adjustment Mechanism, commerce and industries minister Piyush Goyal said on Tuesday. "They are very keen to pursue that and they have offered that India could, instead of paying CBAM tax to …

Proposed EU carbon tax protectionist, says Economic Survey
8 months ago

Proposed EU carbon tax protectionist, says Economic Survey

The Hindu  

Echoing the Centre’s concerns on “protectionism”, the Economic Survey has noted that the forthcoming Carbon Border Adjustment Tax mooted by the European Union “went against the spirit of the Paris Agreement.” The Carbon Border Adjustment Mechanism, as it is called, are tariffs that will apply on energy-intensive goods imported into the European Union. This is to ensure that local manufacturers …

Economic Survey 2023-24: India’s success in exports and reducing Chinese imports
8 months ago

Economic Survey 2023-24: India’s success in exports and reducing Chinese imports

The Hindu  

The government's steps such as mandatory quality norms and increase in customs duties have significantly helped the domestic toy players to boost exports and reduce dependence on Chinese imports, Economic Survey said on July 22. "India's import bill for toys from China dropped from USD 214 million in FY'13 to USD 41.6 million in FY'24, leading to a decline in …

Navigating carbon markets: Strategies for sustainable businesses
8 months, 3 weeks ago

Navigating carbon markets: Strategies for sustainable businesses

Hindustan Times  

In the face of escalating climate crisis concerns, businesses across industries are recognising the urgency to reduce their carbon footprint and transition towards a sustainable, low-carbon future. {{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}} By strategically engaging in carbon reduction initiatives and trading in the carbon market, organisations have the potential to optimise costs and unlock new revenue streams. The implementation of proactive …

Navigating carbon markets: Strategies for sustainable businesses
8 months, 3 weeks ago

Navigating carbon markets: Strategies for sustainable businesses

Hindustan Times  

In the face of escalating climate crisis concerns, businesses across industries are recognising the urgency to reduce their carbon footprint and transition towards a sustainable, low-carbon future. Investing in robust data management systems, incorporating advanced monitoring technologies and rigorous verification processes, is essential to maintain transparency and credibility in the carbon market. The implementation of proactive carbon asset management practises …

EU carbon border tax will do little to cut emissions: ADB study
1 year, 1 month ago

EU carbon border tax will do little to cut emissions: ADB study

The Hindu  

A European Union plan to impose tariffs on high-carbon imports could hurt developing countries in Asia but is unlikely to lead to big reductions in greenhouse gas emissions, the Asian Development Bank said in a report published on Monday. The Carbon Border Adjustment Mechanism was introduced to address concerns that the outsourcing of manufacturing had put large parts of the …

Parliament panel suggests govt to seek 3 years deferment on EU's carbon tax for MSMEs
1 year, 1 month ago

Parliament panel suggests govt to seek 3 years deferment on EU's carbon tax for MSMEs

The Hindu  

India should seek deferment on imposition of carbon tax by the European Union on engineering sector's MSMEs by three years as domestic manufacturers may not have the financial resources to counter the duty, according to a parliamentary panel's report. The department related parliamentary standing committee on commerce's report — Comprehensive Strategy to Map Major Products and Countries to Maximize Exports …

India plans to protest EU's carbon tax at WTO meeting: sources
1 year, 1 month ago

India plans to protest EU's carbon tax at WTO meeting: sources

The Hindu  

India plans to protest the European Union's proposed carbon tax on imports of steel, iron ore and cement at the next meeting of World Trade Organization later this month, saying it would emerge as a new trade barrier, two Government sources said. India had earlier decided to file a complaint in the WTO over the EU's proposal to impose 20-35% …

Navigating the Carbon Border Adjustment Mechanism framework
1 year, 2 months ago

Navigating the Carbon Border Adjustment Mechanism framework

The Hindu  

A concerning development for India is the European Union ’s Carbon Border Adjustment Mechanism. The Commerce and Industry Minister said recently that the proposed carbon tax on imports is an “ill-conceived” move that would become the “death knell” for India’s manufacturing sector. The CBAM is intended to work like the EU’s Emission Trading System, which sets a cap on the …

At COP28, Indian industry leaders welcome EU’s carbon tax on imports
1 year, 3 months ago

At COP28, Indian industry leaders welcome EU’s carbon tax on imports

The Hindu  

“We welcome CBAM.” Indian industry representatives have echoed this at the United Nation’s 28th Conference of Parties referring to Europe’s new carbon tax launched last October. Simply put, it’s a carbon tax on the imports of carbon-intensive sectors, initially like iron and steel, cement, fertiliser and aluminium depending on the carbon emissions emitted during the manufacturing process. So those are …

As India threatens retaliation, European Commission says preventing carbon leakage sole aim of CBAM
1 year, 3 months ago

As India threatens retaliation, European Commission says preventing carbon leakage sole aim of CBAM

ABP News  

Dubai, Dec 8 : The European Commission on Friday said the sole aim of CBAM -- a tax the European Union plans to impose on energy-intensive goods from countries like India and China -- is to prevent carbon leakage, a situation where companies decide to shift out their production from a country with stringent policies. European Commissioner Wopke Hoekstra made …

India will address EU's carbon tax issue; will retaliate if required: Goyal
1 year, 3 months ago

India will address EU's carbon tax issue; will retaliate if required: Goyal

The Hindu  

India will address the issue of the European Union's plan to impose a carbon tax on certain imported goods, Commerce and Industry Minister Piyush Goyal on Friday said, adding that "I will retaliate" if required. Citing an example of Mumbai's Brihanmumbai Electric Supply and Transport, Mr. Goyal said it was a perpetually loss-making body, but they are now moving to …

CBAM will kill EU manufacturing, India will have its own carbon taxes: Goyal
1 year, 4 months ago

CBAM will kill EU manufacturing, India will have its own carbon taxes: Goyal

The Hindu  

NEW DELHI The European Union’s proposed Carbon Tax on imports is an ‘ill-conceived’ move that would become the “death knell” for its manufacturing sector, Commerce and Industry Minister Piyush Goyal asserted on Thursday, adding that even if the plan that is set to kick in from 2026 isn’t eventually abandoned, India would neutralise it by levying its own carbon tax. …

India Should Adopt Calibrated Retaliation Mechanism In Reply To EU’s Carbon Tax, Says GTRI
1 year, 6 months ago

India Should Adopt Calibrated Retaliation Mechanism In Reply To EU’s Carbon Tax, Says GTRI

ABP News  

India should contemplate levying custom duties on certain EU goods in retaliation for the carbon tax being imposed by the European Union on imports of certain sectors, a report by GTRI said on Wednesday. The report by the Global Trade Research Initiative suggested that India should adopt these duties in response to the EU’s carbon taxation on specific imports. It …

European Union official seeks to allay India’s concerns on ‘carbon tax’
1 year, 10 months ago

European Union official seeks to allay India’s concerns on ‘carbon tax’

The Hindu  

The Carbon Border Adjustment Mechanism is not intended to be “protectionist” and only meant to avoid the problem of ‘carbon leakage,’ said Frans Timmermans, European Union’s chief climate negotiator, in an interaction with reporters on Friday. The only thing we will do to protect our industry is to avoid unfair competition on carbon footprint.” ‘Carbon leakage,’ refers to cheaper, more …

EU's proposed carbon tax won't affect trade relationship with India: Bloc's climate policy chief
1 year, 10 months ago

EU's proposed carbon tax won't affect trade relationship with India: Bloc's climate policy chief

ABP News  

Frans Timmermans, the climate policy chief of the European Union, reassured on Friday that the EU's planned carbon tax would not harm its trade ties with India, reported PTI. "If India fulfills all its ambitions in terms of greening the economy and reducing the carbon footprint and creating comparable footprints to the EU, there is no worry that CBAM will …

India’s trade and economic ties with the EU are set to strengthen
1 year, 10 months ago

India’s trade and economic ties with the EU are set to strengthen

Live Mint  

India and the EU, as two large democratic areas, have a long history of shared values, political exchanges and common interests. The EU is India’s third largest trading partner, accounting for 10.8% of our total trade in goods. The EU is a key export market for us, and in many categories like agri-food products, India has a positive trade balance …

India, E.U. Discuss E.U. Carbon Border Tax in Brussels
1 year, 10 months ago

India, E.U. Discuss E.U. Carbon Border Tax in Brussels

The Hindu  

India and the E.U. are working to resolve a looming issue in their trade relationship — the E.U.’s Carbon Border Adjustment Mechanism, with the two sides discussing it during a Minister-level meeting in Brussels on May 15 and May 16. is India’s second-largest trading partner and India’s second-largest export market. has proposed carbon taxes, of which the two sectors where …

We Are Engaged With EU On Carbon Tax Issue, India's Tariffs Often Misconstrued To Be High: Piyush Goyal
1 year, 10 months ago

We Are Engaged With EU On Carbon Tax Issue, India's Tariffs Often Misconstrued To Be High: Piyush Goyal

ABP News  

Commerce and industry minister Piyush Goyal has said that India is engaged with the European Union on the EU's decision to impose carbon tax on certain imported goods and expressed hope that the intention is not to create trade barriers. Addressing the media on Tuesday after the first India-EU Trade and Technology Council meeting in Brussels, he also said India …

Green crosshairs: The Hindu Editorial on the impact of the European Union’s Carbon Border Adjustment Mechanism
1 year, 10 months ago

Green crosshairs: The Hindu Editorial on the impact of the European Union’s Carbon Border Adjustment Mechanism

The Hindu  

Starting this October, the European Union proposes to introduce a framework for levying a carbon tax on imports of products that rely on non-green or sub-optimally sustainable processes and where carbon emissions are deemed to have not been adequately priced. This Carbon Border Adjustment Mechanism will begin with an import monitoring mechanism and culminate in the levy of duties as …

Centre looks into options to counter EU’s carbon tax plan
1 year, 10 months ago

Centre looks into options to counter EU’s carbon tax plan

The Hindu  

The Commerce Ministry is exploring various options to cope with the European Union’s decision to introduce a Carbon Tax, including retaliatory tariff measures, a challenge at the World Trade Organisation and measures to help smaller Indian exporters, a top trade official said. The EU plans to introduce a Carbon Border Adjustment Mechanism that will entail a monitoring mechanism for imports …

Explained | Why is the EU’s carbon border tax worrying other countries including India?
1 year, 10 months ago

Explained | Why is the EU’s carbon border tax worrying other countries including India?

The Hindu  

The story so far: The 27-member European Union has been ramping up its climate action efforts with the European Parliament, the bloc’s legislative body, adopting a rapid pace in climate negotiations. Along with this phasing out of free carbon allowances, the EU will phase in another ambitious and first-of-its-kind policy— the Carbon Border Adjustment Mechanism, aimed at levelling the playing …

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