India-EU FTA to Strengthen Auto Sector, Trade and Innovation

• India-EU FTA negotiations advance positively for balanced trade deal.
• Auto sector gains JV opportunities, jobs, tech transfer via FTA.
• Aim to conclude by 2025 year-end, boosting innovation and exports.

Union Commerce and Industry Minister Piyush Goyal highlighted the honest efforts between India and the European Union to complete a balanced Free Trade Agreement (FTA) for consideration during his speech to the 65th Annual Session of the Automotive Component Manufacturers Association (ACMA).

Goyal pointed out that negotiations, which had to begin with mutual concessions, were proceeding well without holding everything up for perfection. He was optimistic the FTA would open tremendous opportunities for India and the EU regarding trade, investment, technology transfer and economic cooperation, particularly in the resilient automotive component sector.

Goyal observed that this sector has a crucial role in providing estimated livelihoods to millions of urban and rural Indians, thereby improving their quality of life. The free trade agreement (FTA) will allow Indian manufacturers to prepare joint ventures with European and global companies and encourage technology partnerships, evolving partners in innovation.

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India's comparative advantage in design, development, and research - underpinned by a talented workforce - sets it up as a preferred partner for centre international companies. These partnerships can lead to lower costs, greater productivity, more jobs for young people, and a status of addressing high-quality components.

Maroš Šefčovič, the European Commission’s Trade and Economic Security Commissioner, characterized the discussions as the most thorough to date, consistent with the pledge from Prime Minister Narendra Modi and European Commission President Ursula von der Leyen to wrap up by the end of the year. Šefčovič emphasized the need to deliver an economically meaningful package that would spur each side's economy.

Goyal regarded the reforms after Independence in India as having a drastic effect, benefiting every citizen. He cited Ratan Tata: 'Take the stones people throw at you and build a monument,' encouraging stakeholders to approach challenges head-on, working jointly through whatever roadblocks they encounter. The FTA as the overarching Indian automotive sector is expected to hit $300 billion by 2026, benefits regional exports, and includes green technology components.