New Delhi, May 7 -- Union Commerce and Industry Minister Piyush Goyal on Tuesday strongly opposed the European Union's proposed carbon tax on Indian goods, warning of retaliatory tariffs if the Carbon Border Adjustment Mechanism (CBAM) is implemented.

Speaking at an event in New Delhi, Goyal criticised the CBAM, calling it "very, very irrational" and unfair to friendly nations like India. "If they will put in carbon tax... we will retaliate. It will hurt their own economy, and the retaliation will further hurt them," he said.

CBAM proposes a carbon levy on imports such as steel, aluminum, and cement, potentially raising costs by 20-35 per cent. Goyal stressed that such measures could severely impact Indian exporters and disrupt trade ti...