Key takeaways
- LkSG duties still apply; reporting is suspended and an amendment is pending.
- CSDDD applies from 26 July 2029 (Omnibus thresholds); the Forced Labour Regulation from 14 Dec 2027.
- CBAM's definitive phase began 1 Jan 2026 — Indian steel and aluminium suppliers need emissions data.
Why companies from here use us
- The India–EU FTA was concluded in January 2026; signature is targeted for December 2026, with entry into force expected in 2027.
- EU supply-chain and carbon rules push requirements down to Indian suppliers.
- German Mittelstand firms need a reliable partner in India — not a large agency.
Your home-country rules — and what they mean for an Indian partner
- Germany’s Supply Chain Act (LkSG): the due-diligence duties still apply; the reporting duty has been suspended in practice and an amendment is pending.
- EU CSDDD after the 2026 Omnibus (Directive (EU) 2026/470): applies to EU companies with 5,000+ employees and over €1.5bn turnover, and non-EU companies with over €1.5bn EU turnover — from 26 July 2029. Their suppliers will be asked for evidence well before then.
- EU Forced Labour Regulation: applies from 14 December 2027 — products made with forced labour can be banned from the EU market.
- CBAM: the definitive phase started on 1 January 2026. EU importers of Indian steel and aluminium need verified emissions data; without it, default values raise costs (small importers of 50 tonnes a year or less are exempt).
The India side
- Setting up in India: Deutsch · India for European companies · India–EU FTA guide.
- Swiss, Norwegian and Liechtenstein companies: the India–EFTA agreement has applied since 1 October 2025 — TEPA guide.
What we check for you in India
- Identity, registrations and filed financial statements of the Indian partner — how it works.
- Financial, tax and FEMA review; related parties; litigation through public records and counsel.
- Promoters, directors, government links and how intermediaries are paid — for your anti-bribery and supply-chain files.
- Premises visits from Ahmedabad, Mumbai, Bengaluru, Rajkot or Dubai, with a written report in English.
- Full scope: partner due diligence · investment due diligence · supplier verification.
We are Chartered Accountants, not lawyers: home-country legal advice on compliance programmes stays with your counsel. Our reports are built to slot into their files.
Sources
- Covington — CSDDD Omnibus published (Feb 2026)
- Handelsblatt — Lieferkettengesetz amendment stalled (Jun 2026)
- PwC Switzerland — CBAM definitive regime
- SteelOrbis — India–EU FTA signing timeline
Frequently asked questions
Do German companies still need supply-chain due diligence on Indian suppliers?
Yes. Under Germany's Supply Chain Act the due-diligence duties continue even though the reporting obligation has been suspended in practice and an amendment is pending.
When does the EU CSDDD apply?
After the 2026 Omnibus amendments, from 26 July 2029, for EU companies with 5,000+ employees and over €1.5bn turnover, and non-EU companies with over €1.5bn turnover in the EU.
How does CBAM affect Indian steel and aluminium suppliers?
Since 1 January 2026 EU importers pay for embedded emissions; they need verified emissions data from Indian suppliers, otherwise higher default values apply.