With the United Kingdom (UK) gearing up to levy carbon border tax on imported goods in 2027, India is bargaining for relief measures ranging from a longer transition period to repatriating the tax, people aware of the matter said.
India is seeking a bilateral commitment on these aspects as part of the free trade agreement (FTA) being negotiated between the two sides.
Both countries hope to finalise the deal by February -- before the Lok Sabha election in India.
During the FTA negotiations, one of the options India has proposed is giving a greater transition period since the UK is