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After Europe’s carbon tax, Germany props up fresh hurdles for Indian companies

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After Europe’s carbon tax, Germany props up fresh hurdles for Indian companies

Indian companies doing business with European firms are facing additional challenges as Germany tightens its Supply Chain Due Diligence Act (SCDDA), which aims to ensure fair labor and environmental standards. This imposes compliance and reporting costs, potential fines, and loss of business opportunities for violations. The SCDDA requires companies to identify, assess, and prevent any human rights and environmental violations in their operations and supply chains. India, along with other exporting nations, will have to comply with Germany's regulations, which could impact market access. Additionally, Indian firms are already subject to the European Union's Carbon Border Adjustment Mechanism (CBAM) for carbon-intensive goods exports.

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