India-EU FTA: Carbon Tax Parity Ensured, Major Trade Pact Progresses

• Commerce Ministry confirms India's long-term interests are safeguarded against EU's CBAM (carbon tax) through the FTA, ensuring parity with other nations.
• A technical group will be formed under the FTA to accredit Indian carbon footprint verifiers, and India's future carbon pricing will be factored into CBAM.
• The EU will provide technical assistance to India for industrial carbon emission reduction, and a non-violation clause protects existing concessions.
• The India-EU FTA, India's largest trade pact, covers 21 chapters including goods, services, IPR, and sustainability, with provisions against dumping.
• Discussions for a GI deal and Bilateral Investment Treaty are positive, with significant FDI flows between India and the EU.

Why It Matters: India-EU FTA secures carbon tax parity, offers broad market access, and strengthens bilateral trade and investment.