India to Fight Unfair Carbon Tax on Steel and Other Imports Imposed by EU

New Delhi: Expressing serious concerns over the European Union’s move to impose carbon tax on imports from certain sectors like steel, commerce and industry minister Piyush Goyal on Tuesday assured the domestic industry that India will not accept such unfair taxes and will fight to get a fair deal for producers and exporters. He further said that the world needs to take a view on this tax and India would onboard other countries on the issue to address this ‘very serious’ concern.

Speaking at an industry event here, Goyal said that India has already flagged its concerns over the carbon tax with the European Union (EU) and in the World Trade Organisation (WTO). “I will assure you that we are extremely concerned about the carbon border adjustment mechanism (CBAM). We are taking it up with the WTO very seriously. We shall try to work and fight to get a fair deal for the Indian producers and exporters and nobody is complacent about CBAM,” he said.

The CBAM or carbon tax — a kind of import duty — will come into effect from January 1, 2026, but from October 1 this year, domestic companies from seven carbon-intensive sectors, including steel, cement, fertiliser, aluminium and hydrocarbon products, will have to share data with regard to carbon emissions with the EU.      

“We will always find innovative solutions but I can assure you that India will not be accepting unfair taxes or levies being put on the Indian steel or aluminium industry or any other industry,” he said adding “let us not be scared of it and find solutions which will be to our advantage going forward”. The EU would have to allow ‘common but differentiated responsibility’ to India on the issue as New Delhi is a developing economy,” he said.

According to a report of think tank Global Trade Research Initiative (GTRI), CBAM will translate into a 20-35 per cent tax on select imports into the EU starting January 1, 2026. India’s 26.6 per cent of exports of iron ore pellets, iron, steel, and aluminium products go to the EU. These products would be hit by CBAM. India exported these goods worth $7.4 billion in 2023 to the EU. #End#