INDIAN TRADE AND FTA WITH EU

The India government is planning Free Trade Agreements (FTAs) with European countries. However, Indian industry is anxious as Europeans are sensitive to issues which are considered extraneous to trade in this part of the world.
Environmental issues, child labour and human rights violations have a tendency to impinge on trade in these nations. The proposed FTA will be beneficial to Europe, as trade volumes will rise.
Currently, Europe is facing a recession and some countries are already in its grip. Europe will benefit in the proposed FTA as it will have a very huge market. On the other hand, Indian industry will be greatly handicapped in its export to European countries on the concentrations of issues extraneous to the trade.

The industry would also suffer on reduction of Custom duty on auto parts
"Automotive component manufacturing industry in Punjab is on the rise. Medium type units are supplying sophisticated components to original equipment manufacturers like Maruti, Mahindra, TATA and Motor Cycle manufacturers etc.
The problems of the Indian exporters do not end here as there is currently an 'eco rage' in Europe. Products carry carbon footprint labels. These labels show the quantity (in grams) of carbon dioxide emissions associated with making and transporting them.
Shoppers identify products with the smallest carbon footprints. Producers have to compete to reduce the carbon footprints of products and consumers would be able to tell whether locally-made goods really were greener than imported products.