FTA to unlock growth, innovation, and collaboration in the auto component sector; recent GST reforms hailed as landmark relief for industry
Union Minister of Commerce & Industry Shri Piyush Goyal has 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 open immense opportunities for businesses and consumers on both sides. He was addressing the 65th Annual Session of the Automotive Component Manufacturers Association (ACMA) today.
Shri Goyal emphasised that the FTA must be fair and mutually beneficial, noting that every negotiation involves give and take. He urged that the pursuit of a perfect deal should not become an obstacle to progress and expressed confidence that the FTA will unlock opportunities in trade, investment, technology transfer, research, and deeper economic cooperation.
Highlighting the auto component industry’s role, Shri Goyal said the sector has consistently strengthened India’s position in FTA negotiations and will benefit from the India-EU partnership. He added that the FTA will create new avenues for joint ventures, technology partnerships, and innovation, making India a hub for high-quality and cost-competitive automotive component manufacturing.
The Minister also commended the recent GST reforms announced under Prime Minister Shri Narendra Modi’s leadership, calling them a landmark relief for the auto industry. He noted that GST on auto components has been reduced from 28% to 18%, and for tractors, the rate has been lowered to 5%, boosting both the auto and agriculture sectors.
The session was also addressed by H.E. Maroš Šefčovič, European Union Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency. He described the negotiations as the most constructive and intensive ever between India and the EU and confirmed that both sides are working to conclude a ground-breaking FTA by the end of 2025, in line with the commitment made by Prime Minister Shri Narendra Modi and European Commission President Dr. Ursula von der Leyen.
Commissioner Šefčovič said the aim is to craft a win-win agreement that balances the interests of producers, exporters, and consumers, while promoting sustainability, investment, and innovation. He added that India’s growing role as a global economic engine and Europe’s technology and scale make the partnership strategically valuable for both regions.
Shri Goyal concluded by underlining India’s aspiration to significantly increase vehicle penetration, providing further opportunities for the auto sector. He praised India’s resilience during the COVID-19 pandemic and stressed that under the Make in India programme, the auto industry remains a torchbearer of high-quality manufacturing, exports, and job creation.
Source: PIB
