India's free trade agreement with the European Union could open the door for partnerships with some of Europe's largest automobile giants, Special Secretary Rajesh Agrawal said at SIAM's Annual Convention on Thursday.
Calling the EU deal "the biggest FTA with respect to automobiles," Agrawal said the government's target is to close it at the earliest. "Such agreements can give us deeper access to developed markets while enabling new opportunities for Indian industry with European auto majors," he added.
Agrawal underlined that India is pursuing ambitious FTAs with developed countries after already signing agreements with 27 nations. The strategy, he said, is to drive greater market access abroad, while gradually opening sensitive sectors under quota systems. "We are trying to calibrate negotiations with domestic industry interests in mind, but giving some access to developed economies is essential if we want reciprocity in deeper market access," he noted.
To ensure India's industries are not left exposed, the Commerce Ministry has set up a group to monitor key challenges across sectors. Agrawal also cautioned that resilient supply chains come with costs. "Resilience bears a cost, and we keep that in mind."
With global partners eager for a "piece of India's pie," Agrawal said the country must be farsighted. "Once our market opens up, competition will be intense. If we want to see a Viksit Bharat, we need to grow much faster than our current pace," he emphasised.
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