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India-EU FTA to help attract investments, boost auto manufacturing in India: Darpan Jain

20 May 2026 Evaluate

Additional Secretary in the commerce ministry Darpan Jain has said that the India-European Union (EU) Free Trade Agreement (FTA) will help attract more investments into India and will result in more manufacturing of automobiles in India and exporting to third countries. The India-EU FTA negotiations concluded on January 27, 2026 and the historic pact is expected to come into force from next year. 

He said the automotive sector had appeared to be one of the most challenging sticking points during the India-EU trade talk due to India's historically high import duties on vehicles, but the country has converted those challenges into opportunities through the agreement. India has provided quota-based, long-phased solutions in the sector so that there are concessions also to the EU but at the same time the Indian industry also gets adequate protection. He also said that as the EU has over 40 free trade agreements with 70 nations, Indian exporters can benefit from those pacts.

He further said prices of imported European cars are widely expected to come down after India agreed to gradually reduce duty under its FTA with the EU from as high as 110 percent to just 10 percent, applicable to up to 2.5 lakh vehicles per year, over six times more offered to the UK. On Social Security Agreements (SSAs) with European Union members, he said India already has this pact with 14 countries out of 27 members. He said ‘seven we are negotiating and 6 more are being planned’. These pacts help avoid double contribution to social security funds by Indian professionals working for a limited period in the European Union member nations.  


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