+
CBAM May Raise India's Steel Sector Tax by 20-35%, Affecting 0.5% of GDP
Steel

CBAM May Raise India's Steel Sector Tax by 20-35%, Affecting 0.5% of GDP

During the Conference on Carbon Border Adjustment Mechanism (CBAM) organized by ASSOCHAM, Ashwini Kumar, Economic Advisor at the Ministry of Steel, revealed that the Indian steel industry emits 2.5 tonne of CO2 per tonne of crude steel, attributed to limited gas resources and other factors. Kumar discussed the challenges of decarbonisation in light of India's developmental needs and emphasized the need for adopting green technologies despite their high costs and stringent intellectual property regimes.

Kumar asserted that India must prioritize decarbonisation alongside its developmental goals and advocated for the establishment of a Carbon Credit Trading System (CCTS) to improve decarbonisation efforts and production systems.

In his opening remarks, Sabyasachi Bandyopadhyay, Co-Chairman of the ASSOCHAM National Council on Iron & Steel, highlighted the economic implications of CBAM, which could result in additional taxes of 20-35 per cent, potentially affecting 0.5 per cent of India's GDP. He stressed the need for a strategic approach to adapt to these changes.

Devasish Mishra, Executive Vice President at JSW Steel, outlined the challenges of complying with new EU regulations designed to prevent carbon leakages and maintain industrial competitiveness. He remarked that the steel and aluminium industries would need to reassess their production processes to meet stringent environmental standards.

Manish Mishra of Tata Steel discussed the global impact of CBAM, focusing on its integration into business strategies and the difficulties of adhering to new carbon pricing mechanisms.

Dhiraj Nayyar from Vedanta emphasised the importance of strengthening India's manufacturing sector to reach significant economic milestones, including becoming the world's third-largest economy. He observed that a carbon credit trading scheme would help streamline carbon taxation and improve governance.

The conference also featured the release of a report prepared by ASSOCHAM and ICRA, which examined the increased exposure of the steel and aluminium sectors under CBAM and highlighted the urgent need for industry adaptation.

During the Conference on Carbon Border Adjustment Mechanism (CBAM) organized by ASSOCHAM, Ashwini Kumar, Economic Advisor at the Ministry of Steel, revealed that the Indian steel industry emits 2.5 tonne of CO2 per tonne of crude steel, attributed to limited gas resources and other factors. Kumar discussed the challenges of decarbonisation in light of India's developmental needs and emphasized the need for adopting green technologies despite their high costs and stringent intellectual property regimes. Kumar asserted that India must prioritize decarbonisation alongside its developmental goals and advocated for the establishment of a Carbon Credit Trading System (CCTS) to improve decarbonisation efforts and production systems. In his opening remarks, Sabyasachi Bandyopadhyay, Co-Chairman of the ASSOCHAM National Council on Iron & Steel, highlighted the economic implications of CBAM, which could result in additional taxes of 20-35 per cent, potentially affecting 0.5 per cent of India's GDP. He stressed the need for a strategic approach to adapt to these changes. Devasish Mishra, Executive Vice President at JSW Steel, outlined the challenges of complying with new EU regulations designed to prevent carbon leakages and maintain industrial competitiveness. He remarked that the steel and aluminium industries would need to reassess their production processes to meet stringent environmental standards. Manish Mishra of Tata Steel discussed the global impact of CBAM, focusing on its integration into business strategies and the difficulties of adhering to new carbon pricing mechanisms. Dhiraj Nayyar from Vedanta emphasised the importance of strengthening India's manufacturing sector to reach significant economic milestones, including becoming the world's third-largest economy. He observed that a carbon credit trading scheme would help streamline carbon taxation and improve governance. The conference also featured the release of a report prepared by ASSOCHAM and ICRA, which examined the increased exposure of the steel and aluminium sectors under CBAM and highlighted the urgent need for industry adaptation.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code