India and the European Union are pushing hard to seal a fair and comprehensive Free Trade Agreement (FTA) that boosts businesses and everyday consumers on both sides. Union Commerce Minister Piyush Goyal shared this update while speaking at the 65th Annual Session of the Automotive Component Manufacturers Association (ACMA) in New Delhi on Friday.
Goyal stressed that no FTA can be one-sided—it’s all about give and take to keep things balanced. “Don’t let the hunt for perfection stall real progress,” he said, adding that the talks are heading in a very positive direction. He believes this deal will unlock huge opportunities in trade, investment, tech transfers, and stronger economic ties between India and the EU.
The minister is optimistic about India’s automotive component sector, which has shown real grit in past FTA negotiations. “This industry will love the new provisions—think growth, collaborations, innovation, and R&D partnerships,” Goyal remarked. He highlighted how the sector supports India’s manufacturing push and links up with global supply chains.
With this India-EU FTA, Indian manufacturers can team up with European firms and others worldwide, sparking joint ventures and tech-sharing deals. Goyal pointed out India’s edge in cost-effective design, development, and R&D, plus its skilled workforce. “This makes India a top pick for global auto giants, cutting costs, boosting productivity, creating youth jobs, and cementing our spot in high-quality auto parts production,” he added.
Maros Sefcovic, the EU’s Commissioner for Trade and Economic Security, also spoke at the event. He called the ongoing India-EU FTA talks “ground-breaking” with unmatched energy—the most intense and productive ever between the two. Unlike past attempts, these negotiations build on real trust and big ambitions.
Sefcovic said both sides aim to wrap up by year-end, honoring promises from Prime Minister Narendra Modi and European Commission President Ursula von der Leyen. The goal? A win-win pact that balances producer, exporter, and consumer needs while driving trade in goods and services, investments, innovation, sustainability, and closer ties.
“India’s rising as a global economic powerhouse, and a solid partnership with us will supercharge the EU—just as Europe’s tech and scale will fuel India’s growth,” Sefcovic noted.
Goyal echoed this, calling the FTA a strategic economic powerhouse. India gains from EU tech and innovation, while the EU taps into India’s scale and resilience. He mentioned India’s plan to ramp up car ownership from 34 vehicles per 1,000 people, opening doors for the auto components industry to go global.
Tying it to the 10-year milestone of Make in India, Goyal said the auto sector has led the charge. Now’s the time to supercharge supply chains, build toughness, and drive jobs, exports, and top-notch manufacturing.
He praised India’s COVID-19 response, from free vaccines and medicines to over 100 countries to keeping essentials affordable. “That built global trust—today, India’s a go-to reliable partner,” Goyal said.
On recent GST reforms under PM Modi’s lead, Goyal called it a game-changer. Dropping GST on cars from 28% to 18% eases the load on the auto industry, while tractors now face just 5%—a big win for farmers. “This is the biggest reform since Independence, benefiting all 1.4 billion Indians by making parts cheaper, formalizing the economy, creating jobs, and sparking demand. Pass these savings straight to consumers,” he urged.
Wrapping up, Goyal quoted Ratan Tata: “Turn the stones thrown at you into a monument.” He encouraged the sector and nation to face challenges head-on with confidence and teamwork—India’s set to grow even stronger.
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