The Economic Times

EU's CBAM poses major compliance challenge for Indian MSMEs; Experts seek urgent government support

Indian MSMEs are struggling with the EU's Carbon Border Adjustment Mechanism, facing compliance hurdles due to a lack of financial and technical resources. Experts urge government intervention, technology transfer, and the development of alternative export markets to protect these smaller businesses. The current carbon accounting framework is seen as inequitable, disproportionately impacting developing economies and threatening the competitiveness of domestic steel and aluminium sectors.