India, EU Free Trade Pact: Goyal Optimistic

New Delhi, Sep 12 (PTI) India and the European Union are working with sincerity and commitment to finalise a comprehensive and balanced free trade agreement that will benefit businesses and consumers on both sides, Commerce and Industry Minister Piyush Goyal said on Friday.

Addressing the Automotive Component Manufacturers Association (ACMA) here, he said such an agreement cannot be a one-sided arrangement, as every negotiation involves a certain degree of give and take to ensure fairness and balance.

Goyal said, "he has long hours of jostling and fighting" with the EU Trade Commissioner Maros Sefcovic on the proposed pact, but "I can tell you, he is a tough negotiator, very difficult to get anything past Maros".

India and the EU are engaged in the 13th round (September 8-12) of negotiations for the agreement here. Sefcovic and the European Commission's agriculture commissioner, Christophe Hansen, are here to review the progress of talks with Goyal. Both sides have targeted to conclude the negotiations by December.

The minister added that it is also important not to let the "search for a perfect deal become the enemy of progress", and stressed that the direction in which the negotiations are moving is extremely positive.

He expressed confidence that the possibilities being unlocked through this process are immense and will open up opportunities for trade, investment, technology transfer, and deeper economic engagement.

Goyal said he is confident that an industry such as the automotive component sector will find the provisions being crafted under the India-EU partnership to be attractive and full of potential.

"The agreement will open new avenues for Indian manufacturers to partner with their European counterparts and with companies from other parts of the world, thereby encouraging joint ventures, technology partnerships, and collaborative innovation," he said.

He noted that India offers significant advantages in terms of cost competitiveness - be it in design, development, or R&D.

Such partnerships will help bring down costs, enhance productivity, create jobs for Indian youth, and further position India as a leading centre for high-quality automotive component manufacturing, he said.

He also noted India's aspiration to increase vehicle penetration from 34 cars per thousand people today to significantly higher levels, creating opportunities for the auto component industry to expand globally.

The session was also addressed by Maros, who said that while negotiations on an FTA had been attempted in the past, never before had the process reached such a level of seriousness, mutual trust, and shared ambition.

The Commissioner said that efforts are being maximised to finalise the negotiations by the end of the year, in line with the commitment made earlier by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.

He underlined that both sides are striving to put in place an economically meaningful package that balances the interests of producers, exporters, and consumers in equal measure.

Maros stressed that the objective is to arrive at a truly win-win agreement that not only facilitates the exchange of goods and services but also promotes investment, innovation, sustainable practices, and deeper cooperation between the two regions.