- New Opportunities for Indian Trade and Industry
Gurugram : Deepak Maini, Chairman of the Progressive Federation of Trade and Industry, welcomed the Free Trade Agreement between India and the European Union, calling it a historic and far-reaching agreement for India’s economy and trade future. He said that this agreement, reached after eighteen years of lengthy negotiations, comes at a time when global trade is facing uncertainties and India needed new, reliable markets.
Deepak Maini said that the European Union is the world’s second-largest economy, and India is rapidly progressing as the fourth-largest economy. This agreement between the two connects a large market of nearly two billion consumers. Indian industries will benefit in the long term from this combined market, which accounts for approximately a quarter of the global GDP.
He said that this trade deal will give new impetus to exports from India in sectors such as textiles, leather, footwear, gems and jewelry, chemicals, pharmaceuticals, marine products, agriculture and dairy products, and auto components. The reduction in import duties on Indian products in European countries will make Indian goods more competitive and establish a strong presence for Indian brands there.
According to Deepak Maini, Indian exporters had suffered significant losses recently due to the high tariffs imposed by the US. In this context, this agreement with the European Union will emerge as a strong alternative for Indian traders and exporters. This will not only increase exports but also create new employment opportunities and encourage investment.
He also said that this agreement will bring modern technology, high-quality products, and new industrial partnerships to India. This will increase the efficiency of Indian industries and strengthen Make in India internationally.
The Free Trade Agreement between India and the European Union is expected to provide multifaceted benefits to the automobile sector. According to Deepak Maini, Chairman of the Progressive Federation of Trade and Industry, this agreement could prove to be a game-changer for the Indian auto industry at the technology, investment, and export levels. The first benefit will be that the significant reduction in tariffs on luxury and premium cars imported from Europe will increase competition in the Indian market. This will incentivize domestic auto companies to further improve their quality, technology, and safety standards. Consumers will have access to better options and vehicles with advanced technology.
The second major benefit will accrue to the auto components sector. There is already existing demand for Indian auto parts in the European Union, and now, with the relief in import duties, exports of auto components from India can increase rapidly. This will give small and medium-sized auto component manufacturers a new identity in the international market.
The third benefit will come in the form of investment. European auto companies may establish manufacturing units and joint ventures in India. This will bring state-of-the-art technology, investments related to electric vehicles and green mobility to India, and create new employment opportunities.
The fourth benefit is that India will be able to strengthen its position in the global automobile supply chain. A strategic partnership with Europe will enhance the credibility of the Indian auto industry and help establish India as a major automobile hub.
Deepak Maini said that the India-EU trade deal is not limited to immediate benefits but, from a long-term perspective, it will prove instrumental in securing a stronger position for India in the global supply chain. The Progressive Federation of Trade and Industry congratulates the Government of India on this historic initiative and hopes that its benefits will reach every trader and industry in the country.