Regarding automobiles, Sefcovic mentioned that negotiators are “seeking a combination of all of this” — quotas, phased tariff reductions, and transitional periods — while acknowledging the significant differences between the two markets. Although Europe’s car market is more extensive, India’s market is rapidly growing and highly dynamic.
He emphasized that the European Union recognizes India’s priorities. “What was crucial for the Indian side was to ensure that your automotive sector will also thrive in the future,” Sefcovic remarked.
He pointed out that the two regions are largely complementary, with India excelling in small and affordable vehicles, while Europe dominates in larger and more advanced models.
“We are exploring ways to help us discover solutions, establish new supply chains, and create an improved business case for European car manufacturers, while unlocking new avenues for collaboration,” he added, underscoring that such a significant agreement necessitates mutual understanding and a balanced result for both parties.
Read Here | India, EU to seal FTA negotiations on January 27
Sefcovic characterized the proposed agreement as a “mega deal” and potentially the largest trade pact the EU has ever negotiated in terms of market size, encompassing nearly two billion consumers. He noted that both sides are diligently working to announce the conclusion of negotiations on January 27, even as final technical details are being ironed out.
In addition to automobiles, the discussions surrounding wines and spirits have been encouraging, though full clarity will emerge only after the deal is finalized. Sensitive topics such as agriculture and dairy have been approached thoughtfully, with essential red lines upheld to facilitate negotiations.
On tariffs in general, Sefcovic stated the goal is 97–99% partial or complete tariff liberalization, which could yield savings of approximately €4 billion annually and potentially double bilateral trade within five years. He also emphasized the broader strategic significance of the FTA in strengthening resilient supply chains, reducing risky dependencies, and generating jobs across India and the European Union.
Also Read | India-EU FTA: Red lines on agriculture and dairy fully respected, says EU trade commissioner
