India–EU Trade Deal Nears Final Lap, Minister Says FTA Will Unlock Strategic Gains for Economy
India and the European Union are approaching a decisive phase in the long-awaited Free Trade Agreement, said Union Minister for Commerce and Industry Piyush Goyal, addressing the 65th Annual Session of the Automotive Component Manufacturers Association (ACMA).
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| India-EU Trade Deal Almost Done. Via Piyush Goyal |
Back in 🇮🇳 for the 3rd time this year to advance an ambitious EU-India FTA with Minister @PiyushGoyal. Maximising our efforts to wrap up in 2025.
— Maroš Šefčovič🇪🇺 (@MarosSefcovic) September 12, 2025
The auto sector should be at its core, boosting 2-way trade via win-win tariff liberalisation.@ACMAIndia 👉 https://t.co/nso6YUYbr6 pic.twitter.com/KY3LTASITo
Goyal underscored that the FTA must be balanced, mutually beneficial, and guided by fairness, not idealism. “A perfect deal should not become the enemy of a good one,” he said, calling on industry to stay ambitious but pragmatic.
The Minister confirmed that discussions are progressing with clear deliverables, aiming to expand trade, investment, and technological collaboration.
The India–EU agreement, stalled for over a decade, has now reached an unprecedented level of momentum. European Commissioner Maroš Šefčovič, who also addressed the session, described the talks as among the most serious and constructive ever held between the two partners.
He confirmed that both sides are working to close the deal before the end of 2025, as mandated by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.
Working together for the mutual prosperity of India and the EU 🇮🇳🤝🇪🇺@MarosSefcovic pic.twitter.com/QbXIMwgOds
— Piyush Goyal (@PiyushGoyal) September 12, 2025
Goyal pointed to the automotive components sector as a key beneficiary of the FTA. He said India offers competitive advantages across design, development, and manufacturing, backed by a skilled talent pool.
He urged domestic players to explore partnerships with European firms and scale up research, innovation, and joint ventures. India, he said, is becoming an increasingly attractive base for global automotive companies, and a comprehensive trade agreement will help integrate Indian manufacturers deeper into global value chains.
The Minister noted that the FTA is not just a trade facilitation mechanism but a strategic economic compact. India stands to benefit from Europe’s technological strength, while the EU can tap into India’s scale, resilience, and growth potential.
He cited India’s ambition to increase vehicle penetration from the current 34 per 1,000 people as a sign of long-term demand and market opportunity for auto players.
Delighted to address the 65th Annual Session of @ACMAIndia alongside my friend, @MarosSefcovic, EU Commissioner for Trade and Economic Security.
— Piyush Goyal (@PiyushGoyal) September 12, 2025
Commended the good work being done by ACMA and spoke about the immense opportunities opening up for the auto components sector,… pic.twitter.com/cMKNIMzb7N
Šefčovič reiterated the EU’s position that the deal must be economically meaningful and strike the right balance between exporters, producers, and consumers.
He said India’s role in the global economy is expanding rapidly, and a deeper partnership will serve long-term European interests.
Goyal praised India’s economic management during the COVID-19 pandemic, citing how the country met global medical and supply chain commitments. He argued that this earned India its current status as a reliable partner.
The Minister also highlighted recent GST reforms as proof of the government’s commitment to industrial growth. He said reducing GST rates on auto components from 28 percent to 18 percent, and on tractors to 5 percent, will enhance affordability and formalisation, expand demand, and support the agriculture sector.
Calling it the biggest tax reform since Independence, Goyal said the new GST framework would benefit every Indian and strengthen consumption-led growth. He closed his address by quoting Ratan Tata, urging industry leaders to convert obstacles into opportunity. He called for boldness, resilience, and clarity of purpose as India builds its economic future.