EEPC India suggests 3-year moratorium for MSMEs from EU's carbon tax

Engineering Exports Promotion Council of India (EEPC India) has suggested the Centre for a three-year moratorium for Indian MSMEs from the carbon tax proposed by the European Union (EU) under Carbon Border Adjustment Mechanism (CBAM), which would come into force in January 2026.

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Talking about the ongoing free trade agreement with the European Union (EU), EEPC India chairman Praksh Chadha underlined the need for a three-year delay for country's MSME sector from the carbon tax proposed by the EU under Carbon Border Adjustment Mechanism (CBAM), which would come into force in January 2026.

EEPC India is the trade and investment promotion organization for the engineering sector sponsored by the Ministry of Commerce & Industry. Set up in 1955, EEPC India now has a membership base of over 12,000 out of whom 60 PC are SMEs.

Under the Ministry of Commerce and Industry EEPC India, an umbrella organisation for trade and investment promotion, has about 12000 members, of which 60 percent are SMEs.