Auto Industry Worried As Interest In India-EU FTA Revives

Posted By: Religare
Subscribe to GoodReturns

With interest in India-EU FTA being revived, the auto industry is concerned over employment in the sectors and adverse impact on the Modi government's Make in India initiative, said the media report.

Auto Industry Worried As Interest In India-EU FTA Revives
The demand of the EU to reduce import duties on fully imported vehicles will not only impact employment in the sector but will also be unfair to automobile makers from Japan, Korea and the US which have made huge investments in India, industry insiders told media.

Society of Indian Automobile Manufacturers (SIAM) Deputy Director General Sugato Sen said, "We have been consistently talking about keeping 20 tariff lines out of all FTAs and the government of India has so far supported this position. SIAM hopes that the position will be maintained in the case of India-EU FTA too."

The 20 items concerning auto sector that are in the negative list of FTAs include 16 different types of vehicles, including two-wheeler, and four different types of engines.

According to auto industry experts, giving in to the demand of EU in the auto sector could result in lower inflow of foreign investments in the key manufacturing sector.

Read more about: auto
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'


Get Latest News alerts from Goodreturns