Indian exporters face a critical challenge as the EU's Carbon Border Adjustment Mechanism (CBAM) makes verifiable carbon emissions data a requirement for market access. Many small and medium enterprises lack the digital infrastructure to provide the granular traceability needed to avoid trade barriers. To maintain global competitiveness, Indian factories must move beyond simple production volume and invest in digital twins, AI, and standardized carbon accounting. Failure to modernize legacy hardware could lead to a consolidation of the supply chain as tech-averse firms lose their export viability.
