🌍 India-EU Talks: Carbon Tax & Data Privacy in Focus 🔹 Key Concern: EU's Carbon Border Adjustment Mechanism (CBAM) - Set to take effect in January 2026, requiring exporters to submit carbon emission data. - India argues CBAM undermines the Free Trade Agreement (FTA), as more products can be added over time. - Impact: 20-35% tax on iron, steel, and aluminium exports to the EU. 🔹 Potential Expansion of CBAM Sectors at risk: Textiles, chemicals, electronics, plastics, and vehicles. India’s exposure: 32% of India’s exports to the EU in 2022 (~$27B) fall under sustainability-focused EU regulations. If CBAM expands, $37B worth of exports (43% of total EU-bound exports) could be affected.