EU-India Trade Pact: A New Era for Automotive Collaboration

The European Union and India are racing against the clock to finalize a free trade agreement by the end of the year. Key negotiators, including EU Trade Commissioner Maros Sefcovic, are eyeing tariff liberalization, especially in the booming automotive sector, as the cornerstone of this ambitious trade pact.

Sefcovic highlighted the potential benefits of the agreement, emphasizing that tariff reductions could boost two-way trade and bring cutting-edge technologies, such as advanced batteries and smart mobility solutions, to India. This move aims to solidify the partnership between the world's third and fourth-largest automotive markets.

The agreement also addresses broader economic implications, including investment and job creation in the high-value sector. European automotive giants like Volkswagen and Mercedes-Benz have already established a presence in India, and the proposed trade deal could further enhance cooperation through shared manufacturing standards and joint efforts to tackle climate change.

(With inputs from agencies.)