The United Kingdom’s aspiration to secure a substantial portion of India’s burgeoning auto sector surfaces as a key objective in the Free Trade Agreement (FTA) discussions, Commerce Secretary Sunil Barthwal disclosed on Friday. This ambition mirrors a broader trend among nations negotiating FTAs with India, all aiming to tap into the prosperous market of India’s auto industry
Barthwal notes India’s rise as a pivotal force in the entire automotive value chain, extending beyond vehicle assembly. The nation’s auto industry has witnessed comprehensive development, spanning auto-grade steel production, component manufacturing, tyre creation, and exports.
Transitioning from traditional internal combustion engines (ICE) to Electric Vehicle (EV) battery-based systems marks a notable shift within the sector. The UK’s focus, particularly on securing duty concessions in the EV segment, has propelled discussions into their concluding stages.
Barthwal underscored India’s strategy of diversifying and risk-proofing its value chains. “No country wants to put all their eggs in one basket, so we are looking for diversification,” he commented, referring to the Bharat Mobility Global Expo 2024 as a critical element in this pursuit.
At the expo’s inaugural event, Commerce and Industry Minister Piyush Goyal set an ambitious agenda for the industry. He challenged Indian automakers to target exporting a minimum of 50% of their production, a substantial increase from the current 14%. Goyal cited India’s advantages, such as scale, labor, technology, and skilled manpower, as justifications for attaining a 50% export share in the auto sector.
Slated to start on February 1 at Bharat Mandapam, New Delhi, the Bharat Mobility Global Expo promises to be a key showcase for India’s automotive strengths. Over 600 exhibitors from 50 countries will display the latest in mobility technology, including electric and hybrid vehicles, urban mobility solutions, and innovative energy sources like hydrogen.
The expo expects to host more than 27 leading vehicle manufacturers unveiling new models and EVs. It will also feature over 400 auto component manufacturers and above 1,000 brands from 13 global markets, alongside specialized pavilions for countries like Japan, Germany, Korea, Taiwan, and Thailand.
A CEO Conclave, focusing on the mobility industry’s future direction, will be a major highlight. Additionally, NASSCOM will demonstrate India’s prowess in automotive software, advanced technology capabilities, and innovation ecosystem.
The Bharat Mobility Global Expo 2024 stands as a testament to India’s burgeoning role in the global auto sector and its potential as a key international player.
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