Driving Forward: India's Auto Industry Set for Major EU Trade Boost

India's potential trade agreement with the European Union could open new doors for the domestic automobile industry, a senior government official indicated. This pact, still in negotiations, promises to boost exports and forge ties with major European auto manufacturers, enriching India's automotive landscape.

Rajesh Agrawal, Special Secretary in the Department of Commerce, emphasized the significance of this prospective deal at a recent SIAM event. He highlighted the EU's rigorous negotiations, seeking duty concessions in the auto sector, paralleling existing agreements like the one with the UK that offers phased tariff reductions.

With talks progressing swiftly, Agrawal underscored the importance of safeguarding sensitive sectors while enhancing market access. Addressing challenges such as global supply chain dependencies and industry handicaps is crucial as India aims to strengthen its auto sector's global footprint.