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.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement