Key Points

"Europe's expertise in engineering and green technologies, combined with India's growing market and manufacturing capabilities, offers a unique blend that can foster growth, create jobs and promote sustainability in both regions," he told the gathering of automobile and its ancillary sector leaders.

"For car and automotive component manufacturers, the EU-India relationship is not just about trade...It's about high-value added investment that will create thousands of jobs in your car factories, such as in the Volkswagen and Mercedes-Benz plants in Pune," he added.

The European Trade Commissioner said that the relation is across the entire ecosystem, supplying car parts, equipment, and software.

"It's also about sharing best practices in manufacturing, investing in research and development for next-generation vehicles, working on standards, and addressing global challenges like climate change through cleaner, more efficient technologies," the EU Trade Commissioner said.

Maros Sefcovic, highlighted that the automotive market in India is expanding and thriving.

"My goal is to ensure that the (India-EU) FTA facilitates two-way trade flows between India and the EU under conditions of tariff liberalisation for all components, from engines to brakes," he suggested.

"This would be a win-win scenario for our industries and would in particular facilitate the introduction of advanced new technologies into India. By combining the power of our automotive markets - the world's third and fourth largest - he said, "we can lead the charge in developing cutting edge combustion engines as well as electric vehicles with advanced battery technologies, and smart mobility solutions that meet the needs of a changing world," he added.

India and the European Union have been "working intensively" for a Free Trade Agreement, expected to be finalised before the end of 2025.

"We are now maximising our efforts to finalise negotiations by the end of the year, as agreed by European Commission President von der Leyen and Prime Minister Modi. "Talks are ongoing...and, given the political will on both sides, I think we are set to meet the deadline," Maros Sefcovic assured.

Referring to the global geopolitical situation and global trade disruption, the EU Trade Commissioner noted that India and the EU need to embrace the possibilities offered by "our new reality as much as protecting ourselves from the risks."

"Which is why we are working on a deal to unlock investment, reduce barriers, expand market access, and enhance supply chains, to the benefit of both sides," he said, referring to the talks for an early FTA.

According to the European Trade Commissioner, in 2024, the EU was India's largest trading partner, ahead of the US and China. More than 6,000 European companies operate in India, while overall bilateral trade in goods hit 140 billion euros in 2023.

- ANI