India, Jan. 28 -- India and the European Union (EU) have agreed on several measures to deal with the 27-member's bloc's tariff on carbon-intensive imports, including the creation of a technical working group and a proposed agreement to support New Delhi's decarbonisation efforts, people familiar with the matter said on Wednesday.

The tariff, known as the Carbon Border Adjustment Mechanism (CBAM), emerged as one of the most contentious issues in negotiations for the free trade agreement (FTA) concluded by the two sides on Tuesday. The FTA, to be signed after legal scrubbing, is being described by both sides as a "living agreement" on which work will continue on key issues.

The EU has ruled out any concessions under CBAM as it is equally ...