Calibrated Concessions Essential for India-EU Trade Pact Progress

Assocham President Nirmal Kumar Minda warns against blanket reduction in import duties on EU auto components under a proposed trade pact. He emphasizes calibrated concessions that ensure India's manufacturing growth, reciprocity, and competitiveness, particularly for MSMEs. The EU seeks import duty concessions in India's auto sector during ongoing trade negotiations.

Assocham President Nirmal Kumar Minda has raised concerns about a blanket reduction in import duties on auto components under the proposed trade pact between India and the European Union (EU). In an interview with PTI, Minda stressed the need for calibrated concessions to prevent harm to domestic manufacturers, particularly Micro, Small, and Medium Enterprises (MSMEs).

Minda noted the potential benefits of the trade agreement if it grants domestic companies access to advanced technology, larger markets, and stable supply chains. However, he warned that unrestricted duty reductions could negatively impact local suppliers due to the scale, automation, and subsidies associated with EU components.

The ongoing negotiations between India and the 27-nation EU bloc, which commenced in 2007, seek to address various trade-related issues. According to Minda, any concessions provided should come with reciprocal arrangements, phased timelines, and safeguards to reinforce India's manufacturing base while enhancing its global competitiveness.

(With inputs from agencies.)