European Union carbon tax unacceptable, hurting exporting costs: Jairam Ramesh

Key Points

1. The Congress party raised concerns about the EU's carbon tax impacting Indian exports on January 1, 2026.
2. The India-EU Free Trade Agreement (FTA) is expected to be signed later in January 2026.
3. Indian steel and aluminium exporters to the EU will face a carbon tax under the EU's Carbon Border Adjustment Mechanism (CBAM) starting January 1, 2026.
4. In FY 2024-25, India's steel and aluminium exports to the EU averaged $5.8 billion, down from $7 billion the previous year.
5. The think-tank GTRI estimates that Indian exporters may need to cut prices by 15-22% to offset the carbon tax for EU importers.