Yes Carbonic acid is formed. If NaOH is aqueous at the time of reaction, the initial reaction would be
CO2 + H2O → H2CO3
Which goes on to combine with NaOH to form the hydrocarbonate
NaOH + H2CO3 → NaHCO3 + H2O
The hydrocarbonate further reacts with sodium hydrocarbonate to form the carbonate
NaHCO3 + NaOH -> Na2CO3 + H2O
The reaction is self sustaining as long as NaOH molecules remain, because the water molecules formed as by-products of the reactions would continuously combine with CO2, which is always readily available. That's why the universal indicator is turning orange, because the products left after while is the salt (Na2CO3) and the weak acid (H2CO3)
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