European Carmakers Likely to Shift Production to India Amid Rising Costs in Europe: Piyush Goyal

New Delhi, Oct 13 (KNN) Commerce and Industry Minister Piyush Goyal on Monday said India is poised to emerge as a global automobile manufacturing hub, with European carmakers likely to shift production to the country amid rising regulatory and manufacturing costs in Europe.

Speaking at the 'Dilli Dialogue: Policies for a Future-Ready India' in New Delhi, Goyal said, “Everybody is going to come and manufacture in India and with Europe having such crazy regulations, it is going to be impossible to be competitive. All the European manufacturers will come to India,” PTI reported.

Referring to India's free trade agreements (FTAs) with the United Kingdom and the European Union (EU), he noted that the country had offered quota-based tariff concessions for automobile imports. The India-UK trade pact came into effect on July 15, while the India-EU agreement is expected to be signed by the end of this year.

Goyal said the concessions largely cover expensive cars, while the lower-priced segment remains protected. Citing Tata Motors' experience after acquiring Jaguar Land Rover, he said restructuring and shifting some models to India helped the company return to profitability.

India Targets USD 1 Trillion In Exports

Goyal highlighted that the government is targeting USD 1 trillion in exports of goods and services in the current financial year.

During April-August FY27, India's exports rose 17.85 per cent year-on-year to USD 215.91 billion, while imports increased 18.21 per cent to USD 363 billion.

He noted that growth in imports reflected rising domestic demand and opportunities for local manufacturers and international investors, particularly in electronics, white goods and semiconductors.

Highlighting India's expanding engagement through FTAs, Goyal said trade partnerships with developed economies would create opportunities for Indian businesses and workers while providing access to advanced technologies.

Focus On Manufacturing And Job Creation

The minister called for greater engagement with global technologies alongside efforts to develop sectors with strong employment and business potential.

He identified textiles, footwear, agriculture and food processing as areas where India has competitive strengths. Tourism, he said, also offers significant potential for job creation, with artificial intelligence capable of improving promotional activities.

Goyal also highlighted India's young workforce and growing demand for Indian professionals in countries such as Germany and Japan.

Emphasising quality as a key factor in strengthening India's global competitiveness, he called for coordinated efforts by industry, policymakers and institutions, including the Bureau of Indian Standards (BIS) and the Food Safety and Standards Authority of India (FSSAI).

(KNN Bureau)