Union Commerce and Industry Minister Piyush Goyal on Friday said India and the European Union are working with “sincerity and commitment” to conclude a comprehensive and balanced Free Trade Agreement (FTA) that benefits businesses and consumers on both sides.
Speaking at the 65th Annual Session of the Automotive Component Manufacturers Association (ACMA), Goyal emphasised that the proposed pact cannot be one-sided and requires give-and-take to ensure fairness. He said the negotiations are progressing positively and could unlock significant opportunities in trade, investment, technology transfer and deeper economic cooperation.
Goyal noted that the Indian automotive component industry, which has played a key role in past FTA negotiations, stands to gain from the proposed agreement through joint ventures, technology partnerships and enhanced R&D collaboration. He highlighted India’s cost competitiveness and skilled workforce as factors that could make the country a global hub for high-quality automotive components, boosting productivity, creating jobs and reducing costs.
European Commissioner for Trade and Economic Security Maros Sefcovic described the ongoing talks as “ground-breaking,” saying both sides are striving to conclude negotiations by the end of the year as committed by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.
Goyal also lauded the recent GST rate cuts, calling them a landmark reform and the “biggest since Independence.” He said reducing GST on auto components from 28% to 18% and on tractors to 5% will provide relief to consumers, create jobs and strengthen supply chains.
Reiterating India’s resilience and reliability during the COVID-19 pandemic, the minister said India has emerged as a trusted global partner and urged the automotive sector to aim higher, strengthen supply chains and support the Make in India vision.