[1/4] An employee works inside a steel factory in the northern Indian city of Lucknow June 11, 2010.
REUTERS/Pawan KumarNEW DELHI, July 6 (Reuters) - Already facing subdued demand from developed nations, India's exports are likely to be hit by the European Union's 20% to 35% tariffs on high-carbon goods like steel, iron ore and cement, the finance ministry said in a report released on Thursday.
Reporting of carbon content in exports to the EU would be required beginning Oct. 1, 2023, and the main goods affected would be steel, cement, aluminium, fertilisers, electricity and hydrogen.
"The impending downside risks to India’s exports include the European Union’s introduction of the Carbon Border Adjustment Mechanism," the finance ministry said in its annual economic report.
India's merchandise trade deficit rose faster-than-expected in May to $22.12 billion, up from $15.24 billion in April, due to reduced demand for Indian exports from developed countries.
Persons:
Pawan Kumar, Aftab Ahmed, Shivam Patel, Clarence Fernandez, Simon Cameron, Moore
Organizations:
REUTERS, El, Thomson
Locations:
Indian, Lucknow, DELHI, EU