‘India-EU trade pact to help boost auto mfg’

PTI New Delhi

The India-EU free trade agreement will help attract greater investments into India and boost automobile manufacturing in the country, a senior government official said on Tuesday. The two sides on January 27 announced the conclusion of negotiations for the trade pact, which may come into force from next year. 

Additional Secretary in the Commerce Ministry Darpan Jain said the auto sector appeared to be a challenging area during negotiations for the pact as India has high import duties, but the country has converted those challenges into opportunities through the agreement. India has provided quota-based, long-phased solutions in the sector so that there are concessions also to the EU but at the same time the Indian industry also gets adequate protection, Jain said. 

"It will result in more investments into India...will result in more manufacturing of automobiles in India and exporting to third countries. So India will be integrated into the EU's value chain," he said in New Delhi while addressing a conference on the India-EU trade agreement, which was organised by industry chamber Federation of Indian Chambers of Commerce and Industry (Ficci).