India's Swift Response to Potential UK Carbon Tax

India's Commerce and Industry Minister, Piyush Goyal, has vowed a prompt and fitting reaction should the UK enforce a carbon tax affecting Indian exports. This response follows the UK's future plans to introduce a Carbon Border Adjustment Mechanism (CBAM). India aims to double bilateral trade by 2030.

In a bold statement, Commerce and Industry Minister Piyush Goyal declared that India would 'react and retaliate' if the UK enforces a carbon tax detrimental to its exports. Speaking to reporters, Goyal emphasized India's sovereign power, ensuring countermeasures against any harm to domestic interests.

Following the UK's decision to implement the Carbon Border Adjustment Mechanism (CBAM) from 2027, Goyal reassured his audience that no measure harming India would remain unanswered. This reaction comes on the heels of the comprehensive economic and trade agreement signed in July, intending to double trade by 2030.

Goyal also noted Europe's similar CBAM plans, suggesting that the move might boomerang, hurting the European Union more. The subject was intensely discussed during trade agreement negotiations, spotlighting India's protective stance over its economic interests.

(With inputs from agencies.)