India Sharpens Global Trade Strategy to Boost Manufacturing Competitiveness
India is intensifying its global trade approach to fortify the competitiveness of its manufacturing sector through strategic progress in trade engagements with the United States and the European Union, according to heavy industries and steel minister HD Kumaraswamy. Speaking at an Acma event on Tuesday, Kumaraswamy emphasized that India has adopted a calibrated and strategic engagement with key global partners to improve market access and enhance global competitiveness for Indian manufacturers.
Strategic Trade Engagements with the US and EU
In reference to the India-US trade engagement, Kumaraswamy highlighted commitments toward preferential access for select automotive components and the easing of certain trade-restrictive measures. This move aims to facilitate smoother trade flows and boost exports from India's manufacturing base. On the India-EU trade deal, he noted that the focus is on addressing non-tariff barriers, enhancing regulatory cooperation, and aligning standards in sustainability and advanced automotive technologies. These efforts are designed to create a more favorable environment for Indian manufacturers to compete on the global stage.
Opportunities in the Automotive Sector
Shailesh Chandra, president of Siam and managing director and CEO of Tata Motors Passenger Vehicles, underscored that India has a rare opportunity to position itself as a trusted, high-quality, tech-led automotive supplier. However, he stressed that achieving this requires close alignment between the government, original equipment manufacturers (OEMs), and the component industry. Chandra explained that OEMs' ability to design, manufacture, and export vehicles increasingly depends on the strength and sophistication of content partners. He added that global supply chains are now shaped not just by cost efficiency but also by resilience and speed, making strategic collaborations essential for success.
Implications for India's Manufacturing Industry
The strategic trade engagements with the US and EU are expected to drive significant growth in India's manufacturing sector, particularly in automotive and related industries. By focusing on regulatory alignment and reducing trade barriers, India aims to enhance its export capabilities and attract more foreign investment. This proactive approach is part of a broader effort to strengthen India's position in the global economy and foster sustainable industrial development.
