India-EU FTA Boosts Automotive Sector, Markets Open Firm

• Domestic equity markets opened firm, with Sensex gaining 0.55% and Nifty 0.58% in early trade.
• The automotive sector is a primary focus due to the India-EU Free Trade Agreement (FTA).
• FTA reshapes the Indian automotive landscape, focusing on exports, technology transfers, and global supply chain integration.
• EU's tariff elimination on Indian auto components (3-15%) over 5-10 years will boost Indian suppliers' competitiveness.
• The agreement incentivizes European carmakers like Renault and Volkswagen to use India as a manufacturing hub for exports.

Why It Matters: India-EU FTA is a landmark deal poised to transform India's automotive sector through exports and global integration.