The Congress has warned the EU’s carbon tax regime could undercut Indian steel and aluminium exports despite the scale of market access promised under India and the European Union Free Trade Agreement (FTA). The “hugely-hyped” FTA, announced after nearly two decades of on-and-off negotiations, may also impact India's trade deficit, indigenous EV industry, and export of fuel to the EU, Congress leader Jairam Ramesh said. Its impact on India's trade deficit will have to be monitored closely,” party’s general secretary in charge of communications Ramesh wrote on X. "This (EU rules) can easily become a non-tariff trade barrier, and the EU has been accused of the same by other trade partners. According to Ramesh, Indian drug manufacturers could face tighter patent norms that may affect access to affordable medicines.

Source: The Telegraph January 28, 2026 14:21 UTC