India-EU FTA unlikely to significantly alter trade flows: Schaeffler

Schaeffler India Managing Director and Chief Executive Harsha Kadam said the newly negotiated India-EU free trade agreement is unlikely to substantially reshape import and export patterns for the company, despite the pact's broader implications for bilateral commerce.

Kadam's assessment suggests that while the FTA may reduce tariff barriers between India and Europe, the benefits will be widely distributed across the European industrial base rather than concentrated among individual firms. This levelling effect could limit the competitive gains that Schaeffler might otherwise capture through preferential market access.

The India-EU FTA, which has been under negotiation for several years, aims to boost bilateral trade by reducing duties on goods and services. The agreement extends reciprocal tariff benefits to European companies operating in India's market, potentially intensifying competition for domestic and international players.

Schaeffler, a leading manufacturer of rolling bearings and automotive components with significant operations in India, has long benefited from India's industrial base. The company's cautious outlook on the FTA's impact reflects the reality that tariff reductions alone may not guarantee substantial shifts in trade volumes when competitors enjoy similar advantages.