India-EU FTA to Boost Auto Sector with Trade, Innovation, Jobs
Technology

India-EU FTA to Boost Auto Sector with Trade, Innovation, Jobs

Union Minister of Commerce and Industry Piyush Goyal on Saturday said that India and the European Union are working with sincerity and commitment to finalise a comprehensive and balanced Free Trade Agreement (FTA) that will benefit businesses and consumers on both sides. He was addressing the 65th Annual Session of the Automotive Component Manufacturers Association (ACMA).
The Minister noted that such an agreement cannot be a one-sided arrangement, as every negotiation involves a degree of give and take to ensure fairness and balance. He added that it is important not to let the search for a perfect deal become the enemy of progress, and stressed that the negotiations are moving in a highly positive direction.
Mr Goyal expressed confidence that the opportunities being unlocked through this process are immense, offering new avenues for trade, investment, technology transfer and deeper economic engagement. He said the automotive component sector, known for its resilience and foresight, will find the provisions under the India-EU partnership attractive and full of potential for businesses to grow, collaborate and innovate.
He highlighted that the sector supports millions of livelihoods and shapes the quality of life in both urban and rural India. The Minister emphasised that the FTA will open new avenues for Indian manufacturers to partner with European counterparts and global companies, encouraging joint ventures and technology partnerships.
India’s cost competitiveness in design, development and research, combined with its skilled talent pool, will make it an increasingly attractive hub for global automotive firms. Such collaborations are expected to bring down costs, enhance productivity, create jobs for youth, and position India as a leading centre for high-quality automotive component manufacturing.
The session was also addressed by Mr Maroš Šefčovič, European Commission’s Commissioner for Trade and Economic Security, who described the ongoing FTA negotiations as some of the most intensive and constructive ever held between the two partners. He noted that efforts are being maximised to conclude the talks by the end of the year, in line with commitments made by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.
The Commissioner stressed that the goal is to create an economically meaningful package that balances the interests of producers, exporters and consumers alike. He added that India’s rapid growth will benefit the EU, while Europe’s technology and scale will accelerate India’s development.
Mr Goyal underlined that the FTA will be a strategic partnership, combining Europe’s innovation with India’s scale and resilience. He also pointed to India’s aspiration to increase vehicle penetration from 34 cars per 1,000 people today to much higher levels, thereby expanding global opportunities for the auto component industry.
The Minister recalled that the automobile industry has been a key driver of the Make in India programme, which is now marking 10 years. He urged the industry to aim higher, build resilient supply chains and create jobs, exports and high-quality manufacturing.
He praised India’s response during the COVID-19 pandemic, highlighting how the country upheld global commitments by supplying medicines and vaccines to over 100 countries and ensured the availability of essential goods without profiteering. These actions, he said, earned India the trust of the world.
The Minister also lauded the recent GST reforms, describing the reduction of rates from 28 per cent to 18 per cent as a landmark move that will ease the cost burden on the auto industry. Tractor GST has been reduced to 5 per cent, boosting the agriculture sector. He added that this reform will formalise markets, create jobs and increase demand across the value chain, with benefits passed on to consumers.
Describing the reforms as the biggest since Independence, Mr Goyal affirmed that every citizen in India stands to gain from them.
Concluding his address, Mr Goyal quoted Ratan Tata: “Take the stones people throw at you and build a monument.” He urged the industry and the nation not to be deterred by challenges, but to move forward with confidence, resilience and collective effort.

Union Minister of Commerce and Industry Piyush Goyal on Saturday said that India and the European Union are working with sincerity and commitment to finalise a comprehensive and balanced Free Trade Agreement (FTA) that will benefit businesses and consumers on both sides. He was addressing the 65th Annual Session of the Automotive Component Manufacturers Association (ACMA).The Minister noted that such an agreement cannot be a one-sided arrangement, as every negotiation involves a degree of give and take to ensure fairness and balance. He added that it is important not to let the search for a perfect deal become the enemy of progress, and stressed that the negotiations are moving in a highly positive direction.Mr Goyal expressed confidence that the opportunities being unlocked through this process are immense, offering new avenues for trade, investment, technology transfer and deeper economic engagement. He said the automotive component sector, known for its resilience and foresight, will find the provisions under the India-EU partnership attractive and full of potential for businesses to grow, collaborate and innovate.He highlighted that the sector supports millions of livelihoods and shapes the quality of life in both urban and rural India. The Minister emphasised that the FTA will open new avenues for Indian manufacturers to partner with European counterparts and global companies, encouraging joint ventures and technology partnerships.India’s cost competitiveness in design, development and research, combined with its skilled talent pool, will make it an increasingly attractive hub for global automotive firms. Such collaborations are expected to bring down costs, enhance productivity, create jobs for youth, and position India as a leading centre for high-quality automotive component manufacturing.The session was also addressed by Mr Maroš Šefčovič, European Commission’s Commissioner for Trade and Economic Security, who described the ongoing FTA negotiations as some of the most intensive and constructive ever held between the two partners. He noted that efforts are being maximised to conclude the talks by the end of the year, in line with commitments made by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.The Commissioner stressed that the goal is to create an economically meaningful package that balances the interests of producers, exporters and consumers alike. He added that India’s rapid growth will benefit the EU, while Europe’s technology and scale will accelerate India’s development.Mr Goyal underlined that the FTA will be a strategic partnership, combining Europe’s innovation with India’s scale and resilience. He also pointed to India’s aspiration to increase vehicle penetration from 34 cars per 1,000 people today to much higher levels, thereby expanding global opportunities for the auto component industry.The Minister recalled that the automobile industry has been a key driver of the Make in India programme, which is now marking 10 years. He urged the industry to aim higher, build resilient supply chains and create jobs, exports and high-quality manufacturing.He praised India’s response during the COVID-19 pandemic, highlighting how the country upheld global commitments by supplying medicines and vaccines to over 100 countries and ensured the availability of essential goods without profiteering. These actions, he said, earned India the trust of the world.The Minister also lauded the recent GST reforms, describing the reduction of rates from 28 per cent to 18 per cent as a landmark move that will ease the cost burden on the auto industry. Tractor GST has been reduced to 5 per cent, boosting the agriculture sector. He added that this reform will formalise markets, create jobs and increase demand across the value chain, with benefits passed on to consumers.Describing the reforms as the biggest since Independence, Mr Goyal affirmed that every citizen in India stands to gain from them.Concluding his address, Mr Goyal quoted Ratan Tata: “Take the stones people throw at you and build a monument.” He urged the industry and the nation not to be deterred by challenges, but to move forward with confidence, resilience and collective effort.

Next Story
Infrastructure Urban

CM Inaugurates Rs 3.7 Billion Vilholi Water Treatment Plant in Nashik

Chief Minister Devendra Fadnavis inaugurated the Nashik Municipal Corporation’s 274 MLD Vilholi Water Treatment Plant and the upgraded Mukane water supply scheme, a Rs 3.7 billion project designed to provide a reliable and sustainable water supply to more than 55 lakh residents. The system will also cater to over 1 crore visitors expected during the 2027 Simhastha Kumbh Mela.Funded partly through Rs 2 billion Green Sustainable Bonds, the project strengthens Nashik’s long-term water security, ensures year-round availability, and enhances the city’s preparedness for peak tourist inflow. It..

Next Story
Infrastructure Urban

Indian Speciality Chemical Industry Poised for Strong Global Growth

The International Center for Biosaline Agriculture (ICBA), in partnership with Al Rostamani Group, has inaugurated three major facilities at its Dubai headquarters: a Training and Knowledge Transfer Building, a Plant Tissue Culture Laboratory, and an Integrated Agri-Aquaculture System. The launch took place in the presence of H.E. Dr. Amna bint Abdullah Al Dahak, Minister of Climate Change and Environment, marking a significant step forward in strengthening the UAE’s agricultural innovation ecosystem.Fully funded by Al Rostamani Group, the new facilities reinforce ICBA’s role as a leading ..

Next Story
Infrastructure Energy

Mooreast to Explore Up to 500 MW RE Projects in Timor-Leste

Mooreast Holdings, listed on the Singapore Exchange Catalist, announced that it will begin feasibility studies this month for the development of up to 500 megawatts (MW) of large-scale renewable energy (RE) projects in Timor-Leste.The studies follow a Letter of Intent (LOI) signed between Mooreast and the Secretario de Estado de Electricidade Agua e Saneamento (SEEAS), the secretariat for Electricity, Water and Sanitation under Timor-Leste’s Ministry of Public Works. Under the LOI, Mooreast will explore the development of 300–500 MW of floating renewable energy over the next five to ten ye..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement