‘Finally!’: India is going to become the global hub of auto manufacturing, says Piyush Goyal
Piyush Goyal said international automobile makers would increasingly manufacture in India as domestic demand reaches a viable scale.
- Oct 12, 2026,
- Updated Oct 12, 2026 3:23 PM IST
India is poised to become a global hub for automobile manufacturing, with Commerce and Industry Minister Piyush Goyal saying European carmakers will increasingly look to manufacture in the country as regulations make production in Europe less competitive.
“Finally India is going to become the global hub for car manufacturing. Everybody is going to come and manufacture in India,” Goyal said at The Dilli Dialogue on Monday. He added that European manufacturers would find it difficult to remain competitive under what he described as “crazy regulations”.
Goyal said international automobile makers would increasingly manufacture in India as domestic demand reaches a viable scale. He cited luxury carmakers that initially tested the Indian market before setting up manufacturing plants in Pune.
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Referring to Tata Motors’ acquisition of Jaguar, Goyal said the company faced significant difficulties before re-engineering its operations and shifting some models to India, eventually making the business profitable after years of effort.
India and the European Union concluded negotiations on a free trade agreement (FTA) in January, which was jointly announced by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen at the 16th India-EU Summit.
The agreement included a calibrated, quota-based automobile liberalisation package that would allow European manufacturers to introduce models in higher price segments in India. It is also expected to create opportunities for manufacturing in India and exports of Indian-made vehicles to the European market.
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India has similarly provided quota-based tariff concessions to the United Kingdom under its trade agreement, which came into effect on July 15. Goyal said the concessions largely cover expensive cars, leaving the lower-priced segment unopened.
Beyond automobiles, Goyal said rising demand for electronics and white goods could encourage domestic manufacturing investments, including semiconductor factories. He also highlighted India’s young workforce as an advantage at a time when several economies face ageing populations.
The minister said the government is targeting $1 trillion in exports of goods and services this fiscal year. During April-August, exports rose 17.85% year-on-year to $215.91 billion, while imports increased 18.21% to $363 billion.
India is poised to become a global hub for automobile manufacturing, with Commerce and Industry Minister Piyush Goyal saying European carmakers will increasingly look to manufacture in the country as regulations make production in Europe less competitive.
“Finally India is going to become the global hub for car manufacturing. Everybody is going to come and manufacture in India,” Goyal said at The Dilli Dialogue on Monday. He added that European manufacturers would find it difficult to remain competitive under what he described as “crazy regulations”.
Goyal said international automobile makers would increasingly manufacture in India as domestic demand reaches a viable scale. He cited luxury carmakers that initially tested the Indian market before setting up manufacturing plants in Pune.
MUST READ | India-US trade pact must reflect 'changed circumstances', says Piyush Goyal
Referring to Tata Motors’ acquisition of Jaguar, Goyal said the company faced significant difficulties before re-engineering its operations and shifting some models to India, eventually making the business profitable after years of effort.
India and the European Union concluded negotiations on a free trade agreement (FTA) in January, which was jointly announced by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen at the 16th India-EU Summit.
The agreement included a calibrated, quota-based automobile liberalisation package that would allow European manufacturers to introduce models in higher price segments in India. It is also expected to create opportunities for manufacturing in India and exports of Indian-made vehicles to the European market.
DON'T MISS | India-US trade deal almost ‘done and dusted’, says Piyush Goyal
India has similarly provided quota-based tariff concessions to the United Kingdom under its trade agreement, which came into effect on July 15. Goyal said the concessions largely cover expensive cars, leaving the lower-priced segment unopened.
Beyond automobiles, Goyal said rising demand for electronics and white goods could encourage domestic manufacturing investments, including semiconductor factories. He also highlighted India’s young workforce as an advantage at a time when several economies face ageing populations.
The minister said the government is targeting $1 trillion in exports of goods and services this fiscal year. During April-August, exports rose 17.85% year-on-year to $215.91 billion, while imports increased 18.21% to $363 billion.