The Federation of Indian Chambers of Commerce and Industry (FICCI) warns that Europe's Carbon Border Adjustment Mechanism (CBAM) creates significant financial and operational hurdles for Indian exporters. As India negotiates free trade agreements with the EU and UK, the pressure to meet strict sustainability and carbon reporting standards is increasing. These regulations particularly threaten small and medium enterprises that lack the infrastructure for complex carbon accounting. The industry is calling for better support systems to help businesses adapt to these green trade barriers and maintain market access to Europe.
