Europe's proposed anti-pollution mechanism threatens India's $37 billion exports

Mumbai: 43 percent of India's total exports to Europe may be at risk due to the proposed Carbon Border Adjustment Mechanism (CBAM) of the European Union. Europe intends to implement CBAM and other initiatives as part of the anti-pollution campaign.

After America, Europe is India's main export market. According to a report by the Center for Energy, Environment and Water, some of India's businesses are at risk due to proposed European regulations. Sectors where trade may be at risk include textiles, chemicals, consumer electronics, plastics, etc. In 2022, 32 per cent of India's total exports to Europe were from the products of the mentioned sectors.

A total of $37 billion worth of exports across all sectors could be at risk from the implementation of the mechanism, which is 43 percent of Europe's total exports in 2022. A number of non-tariff measures are being implemented by developed countries to address the challenges of environment and climate change.

India has taken numerous steps to reduce pollution but it needs to take more steps to avoid affecting exports, the report noted.