Can Indian MSMEs Survive Europe’s Carbon Tax?

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Издатель Jun 3, 2026

Can Indian MSMEs Survive Europe’s Carbon Tax? | The Secretariat

Indian MSMEs are facing a major crisis as the European Union’s Carbon Border Adjustment Mechanism (CBAM) comes into full effect.
With carbon costs ranging from 60 to 100 Euros per tonne of CO2, many MSMEs are seeing production costs rise by 5-8%. Combined with rising freight costs due to the West Asia crisis, Indian exporters are under severe pressure.
We explain what CBAM is and how it works, the growing demand for Mutual Recognition Agreements (MRAs) with the EU, how China, Vietnam, and Bangladesh are responding to this challenge, India’s Carbon Credit Trading Scheme (CCTS) and its current limitations, and the future risks as CBAM may expand further in 2028. With India-EU trade crossing $105 billion, the livelihood of over 1.7 lakh export-oriented MSMEs and millions of jobs are at stake.
If you’re an exporter, policymaker, or someone who wants to understand the real impact of green policies on Indian businesses, this video is a must-watch.

Indian MSMEs | crisis | European Union | Carbon Border Adjustment Mechanism | CBAM | carbon costs | CO2 | production costs | freight costs | West Asia crisis | Indian exporters | Mutual Recognition Agreements | MRAs | EU | China | Vietnam | Bangladesh | Carbon Credit Trading Scheme | CCTS | limitations | future risks | 2028 expansion | India‑EU trade | $105 billion | export‑oriented MSMEs | jobs | green policies | Indian businesses.

Read here: https://thesecretariat.in/article/indian-msmes-struggle-with-eu-s-carbon-tax-barrier

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