With fewer than 100 days to the CBAM, there is both good and bad news for India.
As of January 1, 2026, the EU will impose CBAM charges on imports of goods such as iron, steel, aluminum, cement, electricity, hydrogen, and fertilizers. As a leading exporter of steel and aluminum to the EU, India will be affected.
First, the bad news: According to the Global Trade Research Initiative (GTRI), India is still largely unprepared for this. This lack of preparedness means Indian businesses could face a significant reduction in exports to the EU.
The good news is that the EU will deduct any carbon price already paid by Indian exporters domestically from their CBAM liability. This reduces the risk of Indian exporters being charged twice for carbon emissions.