India, April 17 -- The European Union is planning an expansion of its Carbon Border Adjustment Mechanism (CBAM) and the move could increase carbon tax costs on Indian manufactured exports to Europe, think tank GTRI said on Thursday.

It said that Indian exporters selling into Europe may need to accelerate emissions accounting, supply-chain traceability, and decarbonisation investments to remain competitive in one of the country's key export markets.

In a draft report issued on April 10, 2026, the European Parliament's Committee on the Environment, Climate and Food Safety (ENVI) proposed five major changes to the CBAM regime.

The changes include extending CBAM to around 180 additional steel- and aluminium-based manufactured products from...