The North News
New Delhi, September 13
India and the European Union are working with “sincerity and commitment” to finalise a comprehensive free trade agreement that would reshape economic ties between the two partners, Commerce and Industry Minister Piyush Goyal has said. Speaking at the 65th annual session of the Automotive Component Manufacturers Association (ACMA), Goyal said the talks were progressing in a “positive direction” and urged negotiators not to allow the pursuit of perfection to stall progress. “Every negotiation involves give and take,” he said. “The possibilities being unlocked through this process are immense.”
The minister said the deal would create opportunities for trade, investment and technology transfer, while strengthening India’s position in global value chains. He argued that India’s cost competitiveness and skilled workforce would make the country an attractive hub for automotive companies. “This will help bring down costs, create jobs for Indian youth, and enhance India’s role as a leading centre for high-quality manufacturing,” he said.
Goyal highlighted the resilience of India’s automotive component sector, which he said had supported previous trade talks and continued to drive innovation. He expressed confidence that the industry would benefit significantly from a balanced agreement with Europe.
Maroš Šefčovič, the European commissioner for trade and economic security, echoed the optimism, calling the current round of talks “some of the most intensive and constructive ever held” between the two partners. He said efforts were being made to conclude the deal by the end of the year, following commitments by Prime Minister Narendra Modi and European Commission president Ursula von der Leyen.
Šefčovič stressed that the objective was a “win-win” agreement balancing the interests of producers, exporters and consumers, while promoting sustainable practices and innovation. “India is fast becoming a key engine of the global economy,” he said. “A strong economic partnership will add value for both sides.”
The minister also linked the agreement to India’s ambition to raise vehicle penetration levels far beyond the current 34 cars per thousand people, saying this would generate vast opportunities for the auto industry.
Reflecting on India’s handling of the Covid-19 pandemic, Goyal said the country’s ability to honour commitments on vaccines and medicines had earned global trust, positioning it as a reliable partner. He also praised recent tax reforms, calling the reduction of GST rates on auto parts and tractors a “landmark relief” for both the industry and consumers.
Calling the changes “the biggest reform since Independence”, Goyal said every Indian would benefit. He concluded his address with a quote from Ratan Tata: “Take the stones people throw at you and build a monument,” urging industry leaders to embrace resilience and ambition.
