EU Trade Deal: Tech Transfers, Exports & Growth
- Europe has become the largest export destination for Indian auto component makers, exceeding the United States, adn a forthcoming free trade agreement (FTA) with the European Union is...
- The India-EU FTA, slated for signing this week, represents the country's largest-ever trade agreement and is projected to stimulate shipments of electric vehicles (EVs) and auto parts.
- Industry leaders believe multinational automakers operating in India will likely increase their utilization of the country as an export hub for both electric and internal combustion engine (ICE)...
India’s Auto Component Exports to Europe Surpass US, EU Trade Deal Expected to Boost Growth
Europe has become the largest export destination for Indian auto component makers, exceeding the United States, adn a forthcoming free trade agreement (FTA) with the European Union is anticipated to further accelerate exports, technology transfers, and joint ventures.
Details of the EU-India Free Trade Agreement
The India-EU FTA, slated for signing this week, represents the country’s largest-ever trade agreement and is projected to stimulate shipments of electric vehicles (EVs) and auto parts. The agreement is also expected to reduce costs associated with importing technology and machinery, and foster collaborative ventures and technology sharing between Indian manufacturers and European automotive companies, according to industry executives.
Impact on Automotive Manufacturing and Exports
Industry leaders believe multinational automakers operating in India will likely increase their utilization of the country as an export hub for both electric and internal combustion engine (ICE) vehicles. However, the most substantial and enduring benefits are predicted to be realized by auto component suppliers. The FTA is expected to substantially enhance market access for Indian suppliers and expedite their integration into the European automotive value chain.