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India’s export sector faces $7.7B in risks from EU carbon rules and climate impacts, threatening GDP and MSMEs.
Indian export industries, especially in aluminium, iron, and steel, face rising risks from climate inaction, with the EU’s Carbon Border Adjustment Mechanism potentially impacting $7.7 billion in exports.
Climate-related extreme weather, which affects India among the top 10 countries globally, threatens infrastructure, labor, and productivity, possibly eroding 4.5% of GDP by 2030.
MSMEs, supplying 60–70% of components and contributing nearly half of exports, may face compliance or cost burdens on up to 30% of their export value.
While some large firms prioritize climate strategy, many lack physical risk assessments, exposing supply chains and long-term competitiveness to growing threats.
El sector de exportación de la India se enfrenta a riesgos de 7.700 millones de dólares por las reglas de carbono de la UE y los impactos climáticos, lo que amenaza el PIB y las PYMES.