India-EU FTA Talks Gain Momentum: Piyush Goyal Eyes Balanced Partnership

Union Minister of Commerce and Industry, Shri Piyush Goyal, reaffirmed India’s determination to secure a comprehensive and balanced Free Trade Agreement (FTA) with the European Union, while addressing the 65th Annual Session of the Automotive Component Manufacturers Association (ACMA). The Minister emphasized that the negotiations, which are progressing with sincerity and mutual trust, will unlock vast opportunities for businesses and consumers on both sides.

Towards a Fair and Comprehensive Deal

Highlighting the spirit of fairness in trade talks, Shri Goyal made it clear that the India-EU FTA cannot be one-sided. Every negotiation, he said, involves “a degree of give and take” to ensure equity. He urged stakeholders not to let the quest for perfection delay progress, pointing out that the direction of discussions has been “extremely positive” and full of promise for both economies.

The Minister underlined that India’s growing economic weight, combined with Europe’s technological prowess, creates a unique synergy that can deliver a truly win-win outcome. He expressed confidence that the final agreement would boost trade, investment, technology transfer, and deeper economic engagement across critical sectors.

Auto Component Industry at the Forefront

Shri Goyal singled out the automotive component sector as a key driver of India’s growth and a vital stakeholder in the FTA framework. He noted that the sector has a strong track record of contributing to India’s earlier FTA negotiations and has consistently proven its resilience and foresight.

He emphasized that the automotive ecosystem in India is increasingly integrated with global value chains, and the upcoming FTA will expand opportunities for collaboration, innovation, and research and development. He also assured that the sector would benefit from Europe’s advanced technologies, while Europe would gain from India’s cost competitiveness, skilled manpower, and growing domestic demand.

India’s aspiration to increase vehicle penetration from 34 cars per thousand people to much higher levels presents enormous opportunities for auto component manufacturers to expand globally. As Prime Minister Narendra Modi has often highlighted, the automobile industry continues to be the torchbearer of the Make in India initiative, which celebrates its 10th anniversary this year.

European Union’s Commitment

The session also featured remarks by H.E. Maroš Šefčovič, European Commissioner for Trade and Economic Security. He hailed the current negotiations as “unprecedented in momentum, intensity, and constructiveness”, noting that earlier attempts at an FTA never reached this level of seriousness or trust.

Šefčovič expressed optimism that the deal could be finalized by the end of this year, aligning with the commitment made by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen. He stressed that the FTA will balance the interests of producers, exporters, and consumers, while also promoting sustainability, innovation, and deeper cooperation.

The Commissioner described India as a “key engine of global growth”, adding that Europe’s technology and scale would complement India’s robust economic story, further reinforcing bilateral ties.

Economic, Strategic, and Social Dimensions

Shri Goyal emphasized that the India-EU FTA is not just about trade but represents a comprehensive economic partnership with strategic depth. While Europe will contribute with its innovation and advanced technologies, India offers scale, resilience, and a fast-growing market, making the collaboration mutually enriching.

He reiterated India’s commitment to uphold global trust, recalling how the country supplied vaccines and essential goods to over 100 countries during the COVID-19 pandemic, many free of cost. This, he said, has cemented India’s reputation as a reliable and trusted partner.

GST Reforms: A Landmark Relief for Auto Sector

The Minister also highlighted the recent Goods and Services Tax (GST) reforms under Prime Minister Narendra Modi’s leadership. He termed the reduction of GST rates from 28% to 18% for auto components and to 5% for tractors as a “landmark reform”, significantly boosting the auto and agriculture sectors alike.

He praised the reforms as the “biggest since Independence”, stressing that they will reduce costs, strengthen formalization, generate jobs, and expand demand across the value chain. He urged the industry to ensure that these benefits are fully passed on to consumers.

Confidence, Resilience, and Growth Ahead

In his closing remarks, Shri Goyal quoted industrialist Ratan Tata: “Take the stones people throw at you and build a monument.”

He urged the industry and the nation to continue facing challenges with resilience and confidence, assuring that with collective effort, India will strengthen its global standing and emerge as a leader in high-quality manufacturing, exports, and innovation.