The India-European Union Free Trade Agreement represents a positive change in India’s global trade strategy. For Mahindra Group CEO and MD Dr. Anish Shah, it means more than just tariff cuts. He sees the pact as a new source of economic growth for India. It builds on years of policy reforms while supporting the country’s manufacturing goals.
India’s Sectoral Growth Will Increase, Mahindra says
Shah emphasizes that the agreement is balanced. It opens the Indian market to European companies in a careful way that keeps nurturing local manufacturing. Mahindra views the FTA as a gain rather than a threat.
Shah points out that the agreement benefits the automotive industry in two ways. First, it gives Indian manufacturers duty-free access to European markets, which boosts their ability to export. Second, it encourages European original equipment manufacturers to set up operations in India, strengthening the country’s position as a global production center.
Talk about growth in IT, finance, and more sectors
Mahindra sees the India-EU FTA as one of the most complete trade agreements India has made so far. Shah notes its broad scope, covering areas like artificial intelligence, innovation, clean technology, and mobility, which fit well with Mahindra’s long-term strategy. These elements are expected to drive growth in sectors such as IT services, aerostructures, financial services, agriculture, and renewable energy, creating momentum across industries rather than just isolated benefits.
In a world of geopolitical uncertainty and divided trade flows, Shah believes the agreement is also strategically important. By fostering cooperation based on shared values and long-term sustainability, the India-EU FTA lays the groundwork for a stronger partnership between what he describes as “two natural allies.”
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