India-UK FTA: Driving Growth for Indian Auto Component Industry
The India-UK Free Trade Agreement significantly reduces import duties on automobiles, benefiting Indian auto component manufacturers. Sunil Bharti Mittal notes the shift of manufacturing to India due to lower costs and a growing market. UK firms may establish local operations to capitalize on India's strengths.
- Country:
- United Kingdom
In a strategic move anticipated to invigorate India's automotive sector, the recently inked India-UK Free Trade Agreement promises significant reductions in import duties on automobiles. According to Sunil Bharti Mittal, Chairman of Bharti Enterprises, this could herald a boon for Indian auto component manufacturers, attracting UK component makers intrigued by lower production costs and India's burgeoning domestic market.
Mittal, in an exclusive discussion with ANI, outlined how the agreement could compel UK automobile giants to increase their import of Indian components, with prospects of establishing production units in India. He articulated confidence in India's sophisticated auto parts industry, dispelling fears of an adverse impact on the 'Make in India' initiative. 'Indian industry is well-equipped to capitalize on these developments,' he asserted.
The agreement's phased reduction of import duties also addresses concerns about domestic market protections. Notably, duty on UK-built cars, currently above 100%, will be scaled down to about 10% over a period of ten to fifteen years. Highlighting India's global competitiveness, the Automotive Component Manufacturers Association of India has shown support for the agreement, projecting enhanced export opportunities and streamlined regulations specifically in electric mobility and precision engineering sectors.
(With inputs from agencies.)
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