India's Commerce Minister Piyush Goyal has warned that EU regulations on carbon emissions, deforestation, and steel imports could raise costs for European businesses and consumers. Speaking at PAFI's 13th Annual Forum, he cited CBAM, EUDR, and steel quotas as examples of overregulation that might push companies away from Europe. Goyal suggested India could gain a cost advantage as a result, particularly in auto manufacturing. The EU's Steel Overcapacity Regulation gives India an annual quota of 1.9 million tonnes plus 0.9 million tonnes residual, covering about 80% of India's steel exports. However, CBAM will still apply to Indian steel within the quota. The India-EU trade deal is expected to take effect by March 2027, with India aiming to double exports to the EU. Goyal also noted India is open to Mutual Recognition Agreements to reduce compliance burdens.
