The Indian automobile industry holds key opportunities to develop country-specific strategies and strengthen its overall position in international trade. Foreign investors and companies are now eyeing other Asian countries, including India, after the COVID-19 pandemic slumped China’s economy. Indian automotive players are also identifying alternative suppliers and manufacturers to meet their import needs.
India has signed bilateral trade deals with many countries wherein the exporters prefer free trade agreements (FTAs) to multilateral trade liberalisation, as they get preferential treatment over non-FTA member country competitors. Renegotiating tariff rates with mutual recognition of standards should resolve asymmetrical tariff commitments and entry of non-tariff entry barriers. The review of FTAs would make them more user-friendly, simple and trade facilitative for businesses.
This edition of Auto Bytes looks at India’s FTAs and how the automotive business would respond to it.