As India pushes forward on multiple Free Trade Agreements (FTAs) with global partners, Confederation of Indian Industry (CII) President Rajiv Memani has called for a sharper domestic focus on competitiveness, local manufacturing, and policy alignment to ensure Indian industry gains from upcoming trade pacts.In an interview with CNBC-TV18, Memani praised the government’s proactive approach to FTA negotiations, particularly the Ministry of Commerce, for engaging more deeply with industry stakeholders than in previous years. “The level of engagement and understanding of sectoral concerns has been absolutely fantastic,” he said.
While industry welcomes the strategic significance of FTAs, especially with the United States and European Union, Memani noted growing anxiety about the potential flood of imports into India, particularly in sectors like electric vehicles (EVs).
“There is a worry that surplus capacity in some parts of the world, especially Europe, may end up being dumped into India if duties are slashed,” he warned.To counter this, he said the government must ensure that trade deals are structured in a way that incentivises foreign manufacturers to set up base in India rather than merely exporting.His remarks come as India enters a crucial phase of trade negotiations. Talks with the United States are at an advanced stage, with a mini-deal expected to be concluded this week. The agreement could help avert the imposition of a 25% tariff on Indian electric vehicles and aims to resolve thousands of mutual tariff concerns.Meanwhile, India’s long-drawn negotiations with the European Union have completed eleven rounds since 2022, with a comprehensive agreement targeted by the end of 2025. However, several sticking points remain, including rules of origin, environmental regulations such as the EU’s carbon border adjustment mechanism (CBAM), and labour standards.At the same time, India and the United Kingdom announced an agreement in principle in May this year, covering a broad range of goods and services. While most tariff lines and mobility visa arrangements have been settled, further discussion continues over market access for whisky, pharmaceuticals, and automobiles.India has also concluded a Trade and Economic Partnership Agreement (TEPA) with EFTA countries — Switzerland, Norway, Iceland and Liechtenstein — which is expected to be implemented by late 2025. The bloc has committed to investing around $100 billion in India as part of the pact.With several FTAs progressing in parallel, Memani called for a “harmonisation” of trade frameworks to give industries clearer direction, especially in light of evolving policies like India’s EV manufacturing scheme. “Many companies are waiting to see what the FTAs say before making big investments,” he added.As lower tariffs under FTAs take effect, Indian firms must also brace for greater competition. Memani outlined a roadmap to boost domestic competitiveness: reduce import duties on raw materials, streamline GST input credits, improve logistics and land access, and build a robust vendor ecosystem.In sectors lacking technological depth, such as rare earths or advanced manufacturing, he called for “surgical” support in the form of Production Linked Incentive (PLI) schemes and time-bound duty protections.“The government and industry have to work together to ensure Indian manufacturing doesn’t just survive FTAs, but thrives through them,” Memani said.
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