New Delhi [India], July 26 (ANI): Union Commerce and Industry Minister Piyush Goyal said on Saturday that growing international scrutiny of the European Union’s Carbon Border Adjustment Mechanism (CBAM) could ultimately harm European industries more than its intended targets.
“There is a lot of opposition to CBAM within the EU itself. In fact, the EU’s infrastructure will become costlier, housing will become costlier, and the cost of manufacturing will rise — all of which will hurt their international trade. So, in some sense, the sufferer will not be India. The real impact will be on industries and businesses within the EU, which may actually open more doors and opportunities for India, given our high quality and cost competitiveness in many global markets,” Goyal said.
He further noted, “Even in Europe, there is considerable rethinking about CBAM. When I travel to different European countries and criticize CBAM, many industry players and CEOs of large companies thank me. They say, ‘You speak like you are our minister,’” he added.
Emphasizing Prime Minister Narendra Modi’s approach of turning challenges into opportunities, Goyal asserted that India is well-positioned to deal with such global trade issues.
Speaking at a press conference, Goyal stated, “We are a sovereign and powerful nation today. If anybody hurts our export interests, we will react, retaliate, or rebalance to ensure our interests are protected. I can assure everyone that no unilateral measures which hurt India will go unanswered or without a proportionate response.”
Update on India-UK Free Trade Agreement
On a separate note, Goyal also provided an update on the India-UK Free Trade Agreement (FTA), highlighting significant progress — even in sensitive areas such as the environment, gender, and intellectual property rights.
“We have reached consensus on critical issues like gender, environment, and Intellectual Property Rights. We’ve successfully protected all sensitive sectors of India in relation to the UK. For example, dairy, rice, and sugar — we have not opened these for the United Kingdom. So, in areas where we do not wish to provide access, we have ensured complete protection. There is absolutely no cause for concern for India in this FTA,” Goyal said.
He emphasized that the deal offers major benefits to Indian exporters by ensuring access to the UK market with minimal tariffs. “We’ve secured 99 percent preferential access in most cases — meaning zero-duty access for Indian exports to the UK. This is a zero-compromise, high-benefit agreement. It will not only boost the export of goods and services but also provide a stable, predictable, and secure framework. It positions India as a trusted partner in the UK’s supply chains and will attract more investments into India.”
The much-awaited and landmark India-UK Free Trade Agreement was signed on Thursday, in the presence of Prime Ministers Narendra Modi and Keir Starmer, during PM Modi’s two-day visit to the UK.
On May 6, both leaders had announced the successful conclusion of the mutually beneficial FTA. This forward-looking agreement aligns with India’s vision of Viksit Bharat 2047 and supports the growth aspirations of both nations.
Both countries aim to increase bilateral trade to USD 120 billion by 2030. On Thursday, the UK government confirmed that India’s average tariff on UK products will drop from 15 percent to just 3 percent under the new agreement. (ANI)
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