The European Union's (EU) non-trade measures - carbon tax and deforestation regulation - are expected to impact Indian exporters, Economic Survey 2024-25 said on Friday

India's fiscal deficit for April-December was 9.14 trillion rupees ($105.58 billion), or 56.7% of the estimate for the financial year, government data showed on Friday.

India's Economic Survey warns of EU's carbon tax and deforestation regulation impacting Indian exporters. The Carbon Border Adjustment Mechanism (CBAM) and European Union Deforestation Regulation (EUDR) are expected to have significant implications for Indian businesses.

India and the European Union are looking to firm up ties in the defence and security domain this year, with a series of proposals being on the anvil. The proposals include a new strategic dialogue on foreign-related issues and the elevation of security and defence partnerships at the level of the defence secretary.

Co-chaired the delegation-level meeting with EU Commissioner for Trade and Economic Security @MarosSefcovic. Engaged in productive discussions, reviewing bilateral trade ties and the progress of the India-EU FTA, and the Trade and Technology Council (TTC). Also deliberated on… pic.twitter.com/6RFCAb06N8

This development threatens to significantly impact India's exports, especially in carbon-intensive sectors, necessitating a strategic response and adaptation to new trade regulations.

The Survey also suggested that India should shift focus from merely wooing FDI to making itself more attractive for foreign investors through structural improvements.

India and EU collaborate on cutting-edge technologies, secure raw materials, and develop a mutually beneficial Free Trade Agreement.

As India approaches its 2025 Budget, the commitment to integrating ESG across public and private sectors will be further solidified.

EU agriculture and food imports may face stricter controls, impacting Indian exporters, as EU raises concerns over pesticide residues.

In a post on X, Goyal added, "Engaged in productive discussions, reviewing bilateral trade ties and the progress of the India-EU FTA, and the Trade and Technology Council (TTC). Also deliberated on the global trade situation.

The EU-India dynamic has unfulfilled potential. There are loud calls for Europe to refresh its overall strategy in the Indo-Pacific and address regional divisions.