Indian steel and aluminium exporters may face price cuts of 15-22% to remain competitive in the EU market starting January 1, 2026, due to the EU's Carbon Border Adjustment Mechanism (CBAM). While EU importers will pay the carbon tax, the cost is expected to be passed back to Indian producers through lower prices and tighter contracts. Exporters using high-emission production routes, like blast furnace-basic oxygen furnace steelmaking, face the biggest competitiveness hit, while cleaner production methods could offer an advantage.