Union Commerce and Industry Minister Piyush Goyal on Saturday voiced concerns over the European Union’s Carbon Border Adjustment Mechanism (CBAM), suggesting it may end up burdening European industries more than its intended foreign targets.
“CBAM is facing strong resistance even within the EU. The mechanism is expected to drive up costs for infrastructure, housing, and manufacturing across Europe, ultimately impacting their international trade competitiveness,” Goyal said at a press briefing. “In a way, it won’t be India that suffers, but rather European industry and businesses. This could create new opportunities for India, which offers high-quality products at competitive prices globally.”
Goyal added that many European business leaders share his concerns. “Every time I visit European countries and criticize CBAM, senior industry leaders and CEOs from major corporations often approach me to express their agreement. Some even say, ‘You speak like you’re our minister.’”
Citing Prime Minister Narendra Modi’s philosophy of turning challenges into opportunities, Goyal affirmed India’s preparedness to respond to such trade measures. “India is a sovereign and powerful nation today. If any unilateral step hurts our export interests, we will respond—whether through retaliation or by rebalancing—to protect our interests. I want to assure everyone that India will not let such actions go unanswered.”
India-UK FTA: A Significant Breakthrough
On a separate note, the minister also provided an update on the long-anticipated India-UK Free Trade Agreement (FTA), which he said had achieved major milestones, including progress on sensitive areas such as gender, environment, and intellectual property rights.
“We’ve successfully negotiated protections for India’s sensitive sectors, including dairy, rice, and sugar, which have not been opened up to the UK,” Goyal said. “Every country has its sensitive sectors, and we’ve ensured that India’s interests are fully safeguarded in these areas.”
He stressed that the agreement offers substantial advantages for Indian exporters, including preferential access to the UK market. “We’ve secured 99% preferential market access, with zero-duty on most Indian exports to the UK. There’s been no compromise—only benefits. It’s a landmark agreement that not only facilitates trade in goods and services but also strengthens the overall economic relationship with a stable, predictable, and secure framework. It positions India as a trusted partner in UK supply chains and will help attract further investment into the country.”
The landmark FTA was officially signed on Thursday during Prime Minister Narendra Modi’s two-day visit to the UK, in the presence of his British counterpart, Prime Minister Keir Starmer.
The agreement aligns with India’s “Viksit Bharat 2047” vision and aims to support the growth ambitions of both nations. On May 6, both prime ministers announced the successful conclusion of the deal, calling it mutually beneficial and forward-looking.
The two countries have set an ambitious target to raise bilateral trade to USD 120 billion by 2030. Following the signing, the UK government noted that the average Indian tariff on British goods would drop from 15% to 3% under the new agreement.
