India eyes carbon tax relief amid EU rift

India is seeking relief from a potential carbon tax imposed by the European Union (EU), amid growing divisions within the EU over the policy's economic and administrative implications. The tax could represent 0.05% of India's GDP.

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Environment. This tax burden could represent 0.05% of India's GDP.

"If the CBAM comes into force in its current form and shape, it will result in higher costs," the first person quoted earlier said.

According to the European Commission, EU is India's largest trading partner with goods volume worth €124 billion in 2023, accounting for 12.2% of India's total trade. The bloc is also the country's second-largest export destination with a share of 17.5%, after US's 17.6%.

As a developing economy, India is prioritizing its case to ensure that CBAM does not disproportionately impact manufacturing growth and trade prospects.