India’s booming export sector may soon face turbulence as stricter global carbon regulations come into force, a new study has revealed. With countries tightening their climate goals to achieve net-zero emissions, exporters from India — particularly in carbon-intensive sectors like steel, cement, and textiles — risk losing access to key international markets.

The research highlights that carbon border adjustment mechanisms (CBAMs) and eco-focused trade policies, especially in regions like the European Union, are likely to impose tariffs or restrictions on goods with high carbon footprints.

India’s current industrial ecosystem, heavily reliant on fossil fuels, makes it vulnerable to these emerging green trade norms. Analysts warn that unless India accelerates its decarbonization efforts, including investing in renewable energy, clean manufacturing, and carbon accounting systems, it could face long-term export setbacks.

The report calls for immediate policy interventions to help Indian industries transition to cleaner practices and remain competitive in a greener global economy.