New Delhi, July 3 -- Indian Micro, Small, and Medium Enterprises (MSMEs) face severe compliance challenges under the European Union's Carbon Border Adjustment Mechanism (CBAM), prompting industry experts to call for immediate state intervention, technology transfer, and alternate export supply chains.

R. R. Rashmi, Distinguished Fellow at The Energy and Resources Institute (TERI), talking to the media on the sidelines of PHDCCI's Carbon Shift India 2026 conference, stated that while large-scale industries possess some technical resilience, smaller units lack both the financial capacity and the reporting framework required by European regulations.

"The large industries, like iron and steel or aluminum, do have some financial and technica...