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India-EU FTA Expected to Drive Growth and Innovation in Automotive Sector

Automotive

Business Honor
15 September, 2025

Piyush Goyal highlights India-EU FTA’s potential to boost automotive trade, innovation, and growth.

Union Minister of Commerce and Industry Piyush Goyal spoke of high hopes regarding the advantage the incoming India-EU Free Trade Agreement (FTA) would bring to the Indian automotive sector. Addressing the Automotive Component Manufacturers Association of India (ACMA) event, Goyal highlighted that the FTA would create new opportunities for trade, innovation, and expansion for the automotive industry.

As per Goyal, the provisions being developed under the India-EU partnership will bring in significant opportunities for the auto components sector. He pointed out that the sector's resilience and inclusion into global value chains position it to gain from greater cooperation with European manufacturers. The FTA, to be completed later this year, will open new opportunities for joint ventures, technology alliances, and collaborative innovation, leading to the growth of the sector and strengthening India's position as a hub for manufacturing.

The Minister also pointed out that India's design, development, and R&D cost competitiveness, along with a skilled work force, will make it an appealing partner for European automotive industry players. In partnership with European partners, Indian manufacturers can reduce costs, increase productivity, and generate jobs, especially among the youth.

Goyal's remarks come in the wake of continuing India-EU talks, during which the two partners are keen on finding a consensus that is balanced and reciprocal in nature. The consensus shall be focused on creating more intimate economic relations that shall benefit consumers and businesses from both sides. Goyal's confidence in the FTA is replicated in growing possibilities of India emerging as a key player in the world automobile supply chain, particularly in manufacturing high-grade components.