Indian Govt fears EU's carbon tariffs will raise compliance costs, impede free trade

India-EU Free Trade Agreement (FTA) negotiations are on track as both sides are trying to resolve all the persisting issues, sources from government indicated. The Indian government is trying to engage on several dimensions, while noting that carbon tariffs do raise costs and impinge on free trade.

Experts in India, accredited by the government will be assessing the carbon content. Moreover, it is also undertaking stakeholder consultation on volumes of trade.

With EU's carbon tariffs slated to kick in from 2026, industry associations are making individual efforts to comply while the government is focusing on the aspect of sustainability.