India's trade deal with the EU faces challenges due to strict environmental regulations, including carbon taxes, deforestation rules, and supply chain laws, according to GTRI. These could impose additional costs on Indian exports. The EU's Carbon Border Adjustment Mechanism (CBAM) may impose tariffs of 20-35% on Indian steel, aluminum, and cement. India seeks exemptions or compensatory measures to neutralize these impacts. The EU also restricts remote service delivery by Indian companies and demands stronger privacy regulations, despite India's new Digital Personal Data Protection Act. India wants recognition as a 'data secure country' under GDPR to avoid compliance costs. The EU also pushes for easier access to India’s service sectors and government procurement market, but India is unlikely to agree. In investment talks, the EU seeks changes to India’s Model Bilateral Investment Treaty, which protects India’s regulatory autonomy. The EU also demands binding commitments on labor rights, environmental standards, and data protection. India prefers a flexible approach, fearing such obligations could clash with its policies. Intellectual property remains contentious, with the EU urging TRIPS-plus provisions that India resists, fearing higher drug prices. The EU also seeks automatic GI protection for European products in India, but India insists on following its own registration procedures for GIs. Despite these hurdles, the deal holds potential to boost trade and investment. The India-EU agreement has the potential to significantly boost trade and investment between the two partners. (ICE NEW DELHI)

Fonte notizia: Economic Times