German Ambassador questions India’s decision to hike custom duty on auto parts

Says India should negotiate FTA with EU

A German government official has raised concerns over the Indian government’s decision to increase custom duty on auto parts imports under its Union Budget for financial year 2018/19. According to the Economic Times (ET), German Ambassador to India, Martin Ney, has questioned the Indian government’s decision, saying the move could backfire at a time when India is banking on exports to boost its economic growth. “Instead of taking protective measures, India should negotiate a free trade agreement (FTA) with the European Union (EU). New Delhi is in a very strong position to do so, as India already has a trade surplus of nearly USD5 billion with the EU,” Ney was quoted saying by ET.