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
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement