Piyush Goyal Critiques EU's Carbon Tax on Steel at Berlin Dialogue
During a session in Berlin, Piyush Goyal expressed concerns over the EU's carbon tax and its potential impact on living costs and industry competitiveness.
Goyal warns that the EU's Carbon Border Adjustment Mechanism could lead to higher living costs.
India and Germany aim to increase bilateral trade from €31 billion to €310 billion.
The India-EU free trade agreement is expected to be signed by the end of this year.
Piyush Goyal, India's Minister of Commerce and Industry, raised alarms on Thursday regarding the European Union's Carbon Border Adjustment Mechanism (CBAM) during the Berlin Global Dialogue 2026. He cautioned that the imposition of high import duties on steel could significantly elevate living costs, undermine industrial competitiveness, and adversely affect consumers in Europe. Goyal stated, "If you have put a CBAM on yourself... you are inviting disaster," emphasizing the potential backlash from such policies.
This warning comes as Goyal is on an official visit to Germany and the Netherlands, which runs from October 22 to October 27, 2026. He is accompanied by a delegation of approximately 100 representatives from Indian businesses and startups. In a separate address in Berlin, Goyal highlighted the potential for India-Germany bilateral trade to surge to €310 billion, a substantial increase from the current €31 billion, contingent upon both nations leveraging their complementary strengths.
During discussions, German Federal Minister for Economic Affairs and Energy, Katherina Reiche, advocated for reducing bureaucratic hurdles and fostering joint projects, suggesting that such efforts could double the current trade volume. Goyal also mentioned that the India-EU free trade agreement (FTA) is anticipated to be finalized by the year's end, with operationalization expected within four to five months. He articulated a vision for collaboration in sectors like manufacturing and technology, underscoring the importance of mutual growth.
Germany stands as India's largest trading partner in Europe, with over 2,000 German companies active in the Indian market. Goyal pointed out that Germany could serve as a model for India in areas such as manufacturing and skill development. He expressed optimism about the potential for both countries to enhance supply chain resilience and significantly impact each other's economies.
Looking ahead, Goyal urged businesses to prepare for the impending FTA by identifying potential customers and collaborators, and aligning on quality standards and pricing. He expressed confidence that the agreement, which has been in negotiation for two decades, would soon be signed, marking a pivotal moment for trade relations between India and the EU. Goyal concluded by emphasizing the urgency and commitment from both sides to realize the benefits of this agreement, encouraging proactive engagement from the business community.
