EU's Carbon Tax Could Hurt Its Own Economy More, Says Piyush Goyal

Union commerce and industry minister Piyush Goyal has raised concerns over the European Union's Carbon Border Adjustment Mechanism (CBAM), suggesting it may harm European industries more than its intended targets, including India. "There is a lot of opposition to CBAM in the EU also. EU's infrastructure will become costlier. EU's housing will become costlier. EU's cost of manufacturing will become costlier, which will hurt their international trade," Goyal stated at a press conference.

He highlighted that this scenario could actually create more export opportunities for India, thanks to its competitive manufacturing base. Goyal also noted the growing discontent among European business leaders against CBAM, sharing anecdotes of support from CEOs of large companies during his visits to Europe.

India's Strategic Response to Protect Its Interests

Emphasizing Prime Minister Narendra Modi’s principle of turning challenges into opportunities, Goyal assured that India is prepared to respond if its export interests are threatened. "We are a sovereign and very powerful nation today, so if anybody hurts our export interest, we will react and retaliate or rebalance," he declared.

India-UK Free Trade Agreement: A Landmark Deal

Goyal also discussed the India-UK Free Trade Agreement (FTA), confirming significant progress in sensitive areas like gender, environment, and intellectual property. The FTA ensures 99% preferential or zero-duty access for Indian exports to the UK, described by Goyal as a "phenomenal" deal that promises stability and new investment opportunities.

This agreement is a step towards India's goal to double bilateral trade with the UK to $120 billion by 2030. Additionally, India has secured safeguards through diplomatic communication to protect its interests should the UK implement a carbon tax in the future, retaining the right to take countermeasures if necessary.