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India-UK FTA sparks aluminium growth but CBAM threatens to reverse it
Edited by : Aranya Mondal
4 min read
India’s free trade agreement with the UK is expected to be a big win for aluminium exporters, as it will remove the import duties. But there is also a catch. From January 2027, the UK will bring in its Carbon Border Adjustment Mechanism (CBAM) — a tax linked to carbon emissions. Industry executives warn this could claw back much of the benefit, leaving Indian producers struggling to keep prices competitive in the British market.
Role of FTA
The FTA eliminates import duties on aluminium products, which previously ranged from 2 per cent to 10 per cent in the UK market. Industry players expect this change will improve India’s competitiveness.
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