In 2024-25, India exported items and providers value $824.9 billion, in accordance with knowledge from the Reserve Financial institution of India. The exports accounted for a couple of fifth of India's GDP.
The UK and European Union are rolling out stricter carbon insurance policies, together with carbon border adjustment mechanisms, that are tariffs on greenhouse fuel emissions related to manufacturing of sure imported items.
“Excessive carbon emissions are quick turning into a commerce threat and India's exports are already beneath stress to decarbonise,” Internet Zero Tracker mentioned.
“For India, the problem is evident: keep and develop export competitiveness whereas slashing embodied emissions throughout sectors.”
Coal powers almost three-fourth of India's electrical energy grid, which inflates emissions throughout each items and providers, together with its flagship IT {and professional} providers sectors, mentioned Internet Zero Tracker. In the meantime, rival exporting international locations are supplying the identical markets as much as 20 occasions extra effectively in carbon phrases, largely as a result of cleaner power programs, as per the research. India is within the midst of negotiating commerce offers with key companions, together with the UK and the U.S.
However carbon border adjustment mechanisms, set to take impact in Europe from 2026, may impose tariffs on carbon-intensive imports, threatening India's entry to those markets, mentioned Internet Zero Tracker.
India has pledged to achieve web zero emissions by 2070, and earlier this yr launched a draft sustainable finance taxonomy to channel funding into low-carbon sectors.
A brand new nationwide emissions-reduction goal can be anticipated forward of the COP30 local weather summit in Brazil this November.
