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.

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