Dubbed as the mother of all free trade deals, the India-EU FTA (free trade agreement) has spooked the Indian auto industry. The auto sector concerns arise even as FTA is unlikely to be signed at the India- EU summit scheduled on February 10. The concerns arise from the fact that the trade block has demanded that India cut its auto sector duties in the FTA.
In 2011, India exported 2,30,000 care to EU while EU exported 6000 cars to India. This is extremely unbalanced. We have to see movement in this sector, EU's ambassador to India, Joao Carvinho, summing up why the trading bloc wants India to lower its auto-sector tariffs.
While commerce ministry officials remain tight lipped, auto lobby group SIAM believes that EU wants India to halve its duty on imported vehicles.
SIAM maintains that the EU demand is unreasonable, the trade bloc is open to lowering duties for Indian car imports.
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