India, July 31 -- There is a comprehensive work plan under the India-EU free trade agreement to address concerns over the European Union's carbon tax, a senior government official said on Thursday, expressing hope that domestic small and medium enterprises will not face any problems due to that measure.

Additional Secretary in the Department of Commerce Darpan Jain said there are provisions, such as extension of flexibility to India by the EU, if the 27-nation bloc extends relaxation to other countries.

CBAM (carbon border adjustment mechanism) took a lot of negotiating capital. In the text, there is a separate Annexure on dealing with CBAM, and there are certain pillars. "The first pillar is that, in case of flexibility in future, that...