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India-EU FTA to pose tough competition for US companies - CNBC-TV18 -
Negotiations for the proposed free trade pact between India and the European Union are at a fairly advanced stage. That could well pose more challenges for companies from the United States, say CNBC-TV18 Anshu Sharma and Rituparna Bhuyan.
The once India's largest trade partner, the US, will now have to compete with others in the Indian market, they report. "If you are going to have a legislation that allows people to ship cars into India and sell them easier, it is just not right, says Karl Slym, President & MD, GM India. "If you don't have a fair playing field for others who have invested and employed locals, then I don't think that's right for India's progress," he reacts to the proposed EU-India Free Trade Agreement (FTA).
According to FTA to be inked this year, about 4500 products would be freely traded, without any duty. The Commerce Ministry hints that the textile industry would be the most benefitted from the pact. On its part, EU is pushing for lower duty on cars and components. Aviation is also in focus in the FTA.
"The only way US can tackle the competition from European counterparts is by signing a similar FTA with India," says Rituparna Bhuyan of CNBC-TV18. There is, however, no indication of such a treaty with the US in the near future, reveal sources at the Udyog Bhavan.
Negotiations for the proposed free trade pact between India and the European Union are at a fairly advanced stage. That could well pose more challenges for companies from the United States, say CNBC-TV18 Anshu Sharma and Rituparna Bhuyan.
The once India's largest trade partner, the US, will now have to compete with others in the Indian market, they report. "If you are going to have a legislation that allows people to ship cars into India and sell them easier, it is just not right, says Karl Slym, President & MD, GM India. "If you don't have a fair playing field for others who have invested and employed locals, then I don't think that's right for India's progress," he reacts to the proposed EU-India Free Trade Agreement (FTA).
According to FTA to be inked this year, about 4500 products would be freely traded, without any duty. The Commerce Ministry hints that the textile industry would be the most benefitted from the pact. On its part, EU is pushing for lower duty on cars and components. Aviation is also in focus in the FTA.
"The only way US can tackle the competition from European counterparts is by signing a similar FTA with India," says Rituparna Bhuyan of CNBC-TV18. There is, however, no indication of such a treaty with the US in the near future, reveal sources at the Udyog Bhavan.
