New Delhi, Dec. 31 -- Indian steel and aluminium exports to the European Union are set to face a sharp competitiveness shock from 1 January 2026, when the EU's Carbon Border Adjustment Mechanism (CBAM) moves from a reporting framework to a payment-linked regime, according to a report by the Global Trade Research Initiative (GTRI).

The report, prepared by former Indian Trade Service officer Ajay Srivastava, said that although the CBAM levy will be formally paid by EU importers, the economic burden will be pushed back to Indian exporters through lower prices, tighter contracts and tougher supplier selection. To remain viable in the EU market, many exporters may have to absorb price cuts of 15-22%.

This warning comes against the backdrop o...