CBAM may be seen as a blessing, says EEPC Chairman

2023-12-29 04:20:20

The ‘carbon border adjustment mechanism’ (CBAM) — a carbon levy that the EU has implemented since October 1 on imported goods — could also be seen as a blessing. India can increase its exports to the EU (because it is cheaper to reduce carbon dioxide emissions in India), says Arun Kumar Garodia, Chairman, Engineering Export Promotion Council (EEPC).

In a recent chat with businessline, Garodia noted that other countries, such as Japan, are also affected by CBAM and it is possible for India to gain an edge over them.

Also read: India’s steel mills, exporters prepare for CBAM

However, EEPC has requested its parent ministry, the Ministry of Commerce, to negotiate with the EU to ensure that exports of goods from Indian MSMEs are kept out of CBAM. This is mainly because MSMEs do not have any control over the carbon content in key raw materials such as steel.

When asked if he thought the EU would accede to such a request, Garodia said he was hopeful.

He said that overall exports of engineering goods from April to November 2023, totalling $70 billion, were about 2 per cent lower than in the corresponding period of 2022. However, he expressed confidence that the full year’s figures would show growth.

Also read: CBAM: EU ready to consider India’s offer to collect carbon tax but after detailing

Two fairs

Meanwhile, EEPC is gearing up for two fairs. It has been named as a coordinator for the Government of India’s ‘Bharat Mobility’ event scheduled to take place at Bharat Mantapam, New Delhi, between February 1 and 3.

Garodia said Bharat Mobility would be a major international show, showcasing India’s prowess in the entire gamut of the automobile industry, including batteries and superconducting motors.

And, EEPC’s annual event, the International Engineering Sourcing Show, will be held between March 4 and 6 at the CODISSIA trade fair complex, Coimbatore. Garodia described the show as a “mega display of India’s capability in engineering.”