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. These carbon related trade measures are becoming a central point of tension during free trade agreement negotiations between India and European partners. Small and medium enterprises are particularly vulnerable to these stricter sustainability and compliance norms. Industry leaders emphasize the need for better support systems to help businesses adapt to these climate frameworks to maintain market access to Europe.
