Piyush Goyal sees India becoming global car hub as Europe’s regulations hurt competitiveness

India's Commerce and Industry Minister Piyush Goyal announced on Monday that European automakers would prefer to manufacture cars in India due to the continent's regulations making it uncompetitive, ultimately declaring India would become a global car manufacturing hub. Goyal stated that numerous companies would come to India for production, as European manufacturers would find it impossible to compete with the continent's stringent regulations. He made these remarks at The Dilli Dialogue.

Goyal highlighted that India has provisionally granted tariff concessions based on quotas to the United Kingdom and European Union as part of their respective free trade agreements. In addition to this, he mentioned that Tata Motors faced significant challenges after acquiring Jaguar and was on the brink of collapse before shifting some models to India, subsequently turning the company around after years of re-engineering.

However, Goyal did not discuss specific European Union regulations, but rather noted that multiple countries, including India, have raised concerns about the bloc's carbon border adjustment mechanism (CBAM).

The minister further revealed that the ministry aims to achieve $1 trillion in exports during the current fiscal year. During the period from April to August this fiscal, exports grew by 17.85% year-on-year to $215.91 billion, whereas imports increased by 18.21% to $363 billion.