Carbon Competitiveness: India at the Net Zero–Trade Nexus

India's export economy is increasingly vulnerable to carbon-based trade measures, with 68% of its exports going to countries committed to net zero. The report highlights that 7.5 million jobs are exposed to active Carbon Border Adjustment Mechanisms (CBAMs), and sectors like professional services are among the most carbon-intensive globally. To maintain competitiveness against rivals like Vietnam and China, the document argues India must accelerate grid decarbonisation and update its 2025 Nationally Determined Contribution.

• A significant portion of India's export economy is tied to net zero-committed markets, with 68% of its $446 billion in exports—supporting 32 million jobs—going to such countries. Of these, 55% are destined for countries where net zero targets are official policy or enshrined in law.
• India's professional services sector, valued at $150 billion, is among the most carbon-intensive in the world per million dollars of output, with some competitors operating up to 20 times more carbon efficiently.
• Employment in India's export sector is highly exposed to carbon pricing; 7.5 million jobs depend on exports to markets with active Carbon Border Adjustment Mechanisms (CBAMs), such as the EU, while another 4.7 million jobs are linked to countries considering similar measures.
• Multinational companies operating in India's top 10 export markets are increasingly decarbonising their supply chains. 231 major companies with combined revenues of $8.1 trillion have Scope 3 coverage, and 45 companies with $1.2 trillion in revenues have specific Scope 3 emission reduction targets.
• The EU CBAM poses a direct threat to India's trade, as the EU accounts for over 17% of India's total trade value and supports nearly 7.5 million jobs. Currently, $5.7 billion of exports to the EU face rising costs, and the measure will be fully implemented in 2026 for electricity, hydrogen, fertilisers, cement, aluminium, and iron and steel.
• India faces a competitive disadvantage in electronics compared to Vietnam, with a CO₂ intensity five times higher.

APA

Net Zero Tracker (2025). Carbon Competitiveness: India at the Net Zero–Trade Nexus. https://zerotracker.net/analysis/india-net-zero-trade-nexus

Chicago

Net Zero Tracker. Carbon Competitiveness: India at the Net Zero–Trade Nexus. 2025. https://zerotracker.net/analysis/india-net-zero-trade-nexus.

Wikipedia

{{cite report |author=Net Zero Tracker |title=Carbon Competitiveness: India at the Net Zero–Trade Nexus |date=23 July 2025 |url=https://zerotracker.net/analysis/india-net-zero-trade-nexus |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{netzerotracker2025carbon, author = {{Net Zero Tracker}}, title = {{Carbon Competitiveness: India at the Net Zero–Trade Nexus}}, institution = {Net Zero Tracker}, year = {2025}, month = jul, url = {https://zerotracker.net/analysis/india-net-zero-trade-nexus}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }