“The auto industry in the next 10 years will define the scale of the Viksit Bharat economy,” he said, referring to the government’s efforts to see India emerge as a developed economy by 2047, the country’s 100th year of Independence.
Ongoing FTA negotiations would provide unprecedented access to international markets, bolstering India’s reputation as a global manufacturing hub, Goyal said.
India is negotiating trade talks with UK, EU, Japan, Korea, Australia, Peru, Oman, and the 10-nation block Asean, among other economies.
Also read | Why India’s auto PLI is yet to pick up after two years
India’s EV ecosystem
“Electric vehicles have become a compulsive and economically viable case and there is a need to build the EV ecosystem leveraging economies of scale for capturing world markets,” Goyal said, adding that India must build its own EV ecosystem before other countries catch up.
The minister stressed that by targeting $100 billion in auto sector exports over the next 10 years India can become self-reliant and more competitive.
Goyal emphasized the economic viability of electric buses and trucks, advocating for 100% replacement of internal combustion engine (ICE) vehicles, and urging first-time buyers to adopt EVs and industry stakeholders to draft a five-year roadmap for transitioning to EVs.
Also read | Million electric bus plan nears gates of PMO
FTA hurdles
India is actively pursuing free trade agreements with several nations to enhance its global trade presence.
India signed an FTA with the European Free Trade Association (EFTA), which includes Iceland, Liechtenstein, Norway, and Switzerland, on 10 March 2024. Another significant agreement with Australia, the Australia-India Economic Cooperation and Trade Agreement (ECTA), was signed on 2 April 2022, and came into effect on 29 December 2022, leading to a substantial boost in bilateral trade.
With the UK, India is in advanced discussions for a trade agreement, with both sides pledging to accelerate progress on the talks.
Trade negotiations with Canada are on hold due to geopolitical tensions.
India resumed negotiations with the European Union on 17 June 2022 after a decade-long pause. However, these talks have encountered hurdles due to differences in standards and trade policies.
The fate of the India-EU FTA remains uncertain amid upcoming elections in key member states such as Germany, Romania and Croatia, which may delay the finalisation of talks with the 27-nation bloc.
Also read | India-UK FTA talks likely to resume in April-June to resolve pending issues
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