India-EU FTA: Carbon Tax Hurdle Remains, Mobility Partnership Boosts Opportunities

• The EU will not offer direct concessions on the carbon tax (CBAM) but will form a technical working group to address Indian industry challenges.
• A $500 million fund (₹4,100 crore) will be dedicated by the EU for two years under its 'CBAM Initiative' to aid Indian industries with emission reduction technologies.
• A new 'Mobility Partnership' will ease travel for Indian students and professionals to Europe, offering better post-study work opportunities and intra-corporate transfers for up to 5 years.
• Indian professionals in 37 key sectors, including IT, will benefit from extended stay options and family residency rights in Europe.
• The FTA is expected to boost Indian exports in textiles, leather, footwear, and marine products, while reducing duties on European wines in India.

Why It Matters: India and the EU are progressing on FTA, addressing carbon tax with support funds and enhancing mobility for professionals.