The Survey has categorised carbon border adjustment mechanism (CBAM) and European Union Deforestation Regulation (EUDR) as protectionist measures that will hurt exports of cement, fertilisers, steel and aluminium from countries such as India, China and Turkey.
India must rely on domestic economic drivers as global trade slows and protectionist measures mount, the Survey said, warning that the days of rapid expansion of world trade are over.
“The global landscape has changed,” chief economic adviser V. Anantha Nageswaran wrote in the report.
“Domestic growth levers will be relatively more important than external ones in the coming years”.
The survey contended that CBAM and EUDR — framed as climate protection measures — serve as disguised trade barriers that could hinder India’s exports.
Protectionism is taking new forms, the report noted, with advanced economies introducing regulations related to labour standards, democracy, emissions and deforestation.
“The game and the end goals are the same, but the tactics keep changing.”
The survey also raised concerns about the potential impact of US trade policies under President Donald Trump.