The European Union's new carbon levy on Indian steel imports has intensified trade tensions just as Brussels and New Delhi negotiate a potential EU‑India free trade deal. Under the EU's Carbon Border Adjustment Mechanism (CBAM), Indian steelmakers must now pay a fee for emissions they are not charged for at home — a move many in India view as protectionism. At the same time, proposed higher EU steel tariffs and reduced duty‑free quotas threaten to make Indian exports less competitive, while