Strategic Move Aims to Strengthen Bilateral Ties and Boost Economic Cooperation in the Dynamic Automotive Industry.
Commerce Secretary Sunil Barthwal revealed on Friday that countries engaged in free trade agreement (FTA) negotiations with India, including the UK, are actively seeking an increased stake in the nation’s rapidly expanding automobile sector. Highlighting India’s prominent role in auto manufacturing, Barthwal emphasized the country’s evolution beyond mere assembly to encompass the entire automotive value chain. He noted India’s comprehensive strength in areas such as producing India’s Auto Sector auto-grade steel, manufacturing components, and tires, and the noteworthy exportation of these products, positioning the nation at the forefront of the global automotive landscape. The dynamics of the automotive sector are undergoing a significant transformation, transitioning from conventional Internal Combustion Engines (ICE) to Electric Vehicle (EV) battery-based systems. Commerce Secretary Sunil Barthwal emphasized the substantial potential in India’s automotive landscape, stating that as the country evolves in this sector, the opportunities are bound to be immense. Reflecting on ongoing Free Trade Agreement (FTA) negotiations, Barthwal noted the keen interest of various nations, emphasizing their focus on securing a share of India’s burgeoning automobile market. He specifically highlighted negotiations with the UK, where discussions include considerations of allocating a certain market share to the UK through the FTA, underscoring the strategic importance of India’s auto sector on the global stage.
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The UK is actively pursuing duty concessions in India’s auto sector, with a particular emphasis on the Electric Vehicle (EV) segment. These negotiations are currently in their final stages, indicating a shared interest in fostering stronger ties between the two nations in the automotive domain. In parallel, India is strategically focusing on enhancing value chains, with an emphasis on de-risking these chains to ensure stability and resilience. Commerce Secretary Sunil Barthwal emphasized the importance of diversification, highlighting the need for countries to avoid putting all their economic interests in one sector. He mentioned that the upcoming Bharat Mobility Global Expo 2024, spanning three days, will play a pivotal role in shaping and facilitating these discussions. The global automotive sector. Acknowledging India’s advantages in terms of scale, a vast domestic market, skilled labour force, technological capabilities, and managerial talent, Commerce and Industry Minister Piyush Goyal expressed a strong belief that India should aim for a minimum 50 per cent share in the global auto sector exports. In his address at the curtain-raiser event for the upcoming Bharat Mobility Global Expo 2024, scheduled to commence on February 1 at Bharat Mandapam, New Delhi, Goyal highlighted the unique strengths that position India favourably in the international market. The sheer scale of production capacity, combined with a robust domestic market, provides a solid foundation for India’s automotive sector to assert a more significant global presence. Goyal emphasized the need for the industry stakeholders to adopt a proactive stance, capitalizing on emerging opportunities and leveraging India’s diverse strengths.
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Commerce Secretary Sunil Barthwal echoed Goyal’s sentiments, underlining the multifaceted strengths that make India a formidable player in the automotive landscape. From abundant labor resources to cutting-edge technology skills, India boasts a wealth of managerial talent and skilled manpower, creating a conducive environment for the automotive sector to flourish. Barthwal emphasized that India’s distinct advantages present a compelling case for the country to strive for a 50 percent share in global auto sector exports. The ongoing negotiations with the UK for a Free Trade Agreement (FTA) in the auto sector were also touched upon during the event. Barthwal informed the audience that discussions with the UK were in the final phase, with a specific focus on securing duty concessions, especially in the Electric Vehicle (EV) segment. The outcome of these talks is anticipated to contribute significantly to shaping the future collaboration between the two nations in the automotive industry. Additionally, the secretary shed light on India’s strategic approach towards value chains, emphasizing the importance of diversification to mitigate risks. Recognizing the global trend of avoiding over-reliance on a single market or supplier, he stressed the need for countries to diversify their economic interests. In this context, Barthwal suggested that India’s three-day Bharat Mobility Global Expo 2024 would play a pivotal role in facilitating discussions and partnerships that contribute to the diversification agenda.
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Social security impasse prolongs negotiations
The UK’s reluctance to include a SSA in the proposed FTA with India has become yet another sticking point in prolonged negotiations@shreyanandi15 #UK #India #FTA #trade https://t.co/wZdJEpHisW
— Business Standard (@bsindia) January 5, 2024
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The upcoming expo is poised to be a crucial platform for showcasing India’s capabilities, innovations, and future roadmap in the mobility and automotive sectors. Industry leaders, policymakers, and stakeholders from around the world are expected to converge, providing an opportunity for collaboration, knowledge exchange, and the exploration of potential partnerships. As India strives to position itself as a global hub for automotive manufacturing, the expo serves as a strategic avenue for fostering international collaborations and propelling the country’s automotive industry to new heights. In conclusion, the statements by Minister Piyush Goyal and Commerce Secretary Sunil Barthwal underscore India’s commitment to leveraging its strengths in the automotive sector. The focus on achieving a substantial share in global exports, ongoing FTA negotiations, and a strategic approach towards value chains collectively signal India’s intent to play a pivotal role in the evolving landscape of the global automotive industry. The Bharat Mobility Global Expo 2024 is anticipated to be a catalyst for driving these aspirations forward, providing a platform for meaningful dialogue and collaboration in the dynamic and transformative realm of mobility. Commerce and Industry Minister Piyush Goyal emphasized the crucial role of Indian businesses in contributing to the global economy, citing their immense potential to capture significant market shares worldwide. Speaking at the curtain-raiser event for the Bharat Mobility Global Expo 2024, Goyal underscored the importance of such mega exhibitions in projecting India’s strengths on the international stage. These exhibitions, characterized by their international scale and ambition, serve as platforms to position India as a formidable player across various industries in the global market.
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The upcoming expo, slated to commence on February 1, is designed to showcase India’s capabilities and innovations to the world, reinforcing the country’s image as an international player. Featuring more than 600 exhibitors from 50 countries, the event will spotlight cutting-edge technologies and breakthroughs in the realm of mobility. It is set to encompass specialized exhibitions, including auto shows with a focus on electric and hybrid vehicles, the ACMA Automechanika, a large-scale tire exhibition, and urban mobility solutions featuring two-wheelers, e-bikes, drones, an EV Infra Pavilion encompassing charging stations and battery swapping, and exploration of alternative energy sources like hydrogen in the mobility landscape.
These specialized exhibitions aim not only to display India’s advancements in technology and innovation but also to foster collaborations and partnerships on a global scale. The expo provides a unique platform for stakeholders from different countries to explore potential synergies, exchange knowledge, and contribute to the evolution of the mobility industry. As the global market continues to evolve, events of this magnitude play a pivotal role in promoting cross-border cooperation and positioning India as a hub for cutting-edge developments in the dynamic mobility landscape.
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