Concerned over the impact of the proposed India- EU free trade agreement, which is currently in the final stages of negotiations, heavy industries minister Praful Patel has written to prime minister Manmohan Singh and sought his intervention to protect the interests of the Indian auto sector. CNBC-TV18's Anshu Sharma and Mehak Kasbekar report with this exclusive story.
Raising the red flag over the likely impact of the India-EU FTA, Praful Patel has said that completely built units of cars should be not be included in the pact. Any tariff relaxations under such a pact, he warns, would adversely impact the proposed 14 billion dollar of investments in the auto sector and also impact employment generation.
Patel writes "There is a concern over the continued pressure from EU negotiators on the government of India to lower tariffs and this as a result would give encouragement to trade, as against the current policy of encouraging manufacturing. These fears are affecting businesses and investors' confidence seems to be weakening.
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