Goyal stressed that negotiations cannot be one-sided and must reflect fairness through mutual concessions. He cautioned against letting the pursuit of a “perfect” deal stall progress, noting that talks are moving in a positive direction. The Minister underscored that such an agreement would be transformative, with particular benefits for the auto component sector, which has consistently played a critical role in India’s global trade engagements.
Boost for Auto Component Sector
Highlighting the potential of the industry, Goyal said the FTA would encourage collaborations with European companies, leading to joint ventures, technology transfer, and research partnerships. He noted that India’s cost competitiveness in design, development, and R&D, combined with its skilled workforce, positions the country as a global hub for automotive manufacturing. According to him, the sector’s resilience and integration with global value chains will make it a natural beneficiary of the FTA.
“The agreement will not only create jobs but also reduce costs, enhance productivity, and strengthen India’s reputation as a trusted partner in global supply chains,” Goyal said. He added that India’s aspiration to increase vehicle penetration from the current 34 cars per thousand people will significantly expand opportunities for the auto industry.
European Union’s Optimism
Echoing similar sentiments, EU Commissioner for Trade and Economic Security Maroš Šefčovič described the ongoing discussions as some of the most constructive in the history of India-EU relations. He noted that both sides are working diligently to finalise the FTA by the end of 2025, in line with commitments made by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.
Šefčovič emphasised that the aim is to design a truly “win-win” deal that balances the interests of producers, exporters, and consumers while also fostering sustainability, innovation, and deeper cooperation. He underlined that India’s growth trajectory makes it an essential partner for Europe, just as Europe’s technology and scale will benefit India.
Strategic Economic Partnership
Goyal noted that the FTA is not just about trade but about building a strategic economic partnership. He said India would gain from Europe’s technological strength, while the EU would benefit from India’s scale and resilience. “This partnership will combine Europe’s innovation with India’s growth story, ensuring mutual prosperity,” he remarked.
GST Reforms for Auto Industry
In addition to FTA discussions, Goyal praised the recent GST reforms announced under Prime Minister Modi’s leadership. He said the reduction of GST rates from 28 percent to 18 percent for auto components, and to 5 percent for tractors, is a landmark decision that will boost both the automobile and agriculture sectors. “This reform deserves a standing ovation,” he said, urging the industry to pass on the benefits directly to consumers.
Calling it the biggest tax reform since Independence, the Minister said every Indian will benefit, as lower taxes will generate jobs, expand demand, and make spare parts more affordable. He linked this move with the vision of “Make in India,” which recently marked its 10th anniversary.
India’s Trusted Global Role
Reflecting on India’s role during the COVID-19 pandemic, Goyal said the country’s ability to meet global commitments without profiteering earned it respect as a reliable partner. He urged the industry to carry forward that spirit of resilience and innovation as India strengthens its place in global supply chains.
Concluding his address, Goyal quoted industrialist Ratan Tata: “Take the stones people throw at you and build a monument.” He encouraged the auto sector to face challenges boldly and continue contributing to India’s growth story.