A joint report by the Confederation of Indian Industry (CII) and IIM Ahmedabad emphasizes that India must rapidly implement a transparent domestic carbon-pricing system and a robust Measurement, Reporting, and Verification (MRV) mechanism to shield exporters under the European Union’s Carbon Border Adjustment Mechanism (CBAM). With CBAM now in its definitive phase, high-emission Indian export sectors, including steel, cement, aluminum, fertilizers, refining, and petrochemicals, must accurately document embedded emissions to claim valid deductions against EU carbon levies. The report stresses that domestic carbon credits must be independently verified at the facility level to maintain global credibility and guard against oversupply. Rather than imposing rigid absolute emissions caps that could stifle national economic development, the study advocates for an emissions-intensity-based baseline-and-credit framework. This strategic model allows Indian manufacturing output to expand freely while financially penalizing high polluters and rewarding companies that achieve superior carbon efficiency, ultimately safeguarding India’s long-term international trade competitiveness.