FTAs Expected to Drive FDI and Manufacturing Growth in India: Audi India

New Delhi — The free trade agreements (FTAs) recently signed by India with the UK and the European Union are expected to do much more than adjust import duties on luxury cars, according to Balbir Singh Dhillon, Brand Director of Audi India. He said these agreements could serve as a catalyst for attracting foreign direct investment (FDI) and expanding manufacturing in the country.

FTAs as Drivers of Economic Growth

Dhillon emphasized that India’s nine FTAs over the past years are poised to bring substantial FDI inflows over the next two to five years. “You will see a lot of manufacturing taking place, wealth creation, and growth in the stock market,” he told ANI.

While FTAs may influence pricing and quotas for imported vehicles, their larger significance lies in transforming the Indian economy, Dhillon noted. He expects the agreements to take one and a half to two years for full implementation, but the long-term benefits extend far beyond automobiles.

Creation of a New Economic Ecosystem

FTAs are anticipated to foster a new economic ecosystem in India, boosting demand for premium vehicles by encouraging local manufacturing and foreign investment. Increased wealth creation, Dhillon said, will directly translate into higher consumption, including luxury cars.

“FTA is more about wealth creation in India, which will lead to people buying more luxury goods, including luxury cars,” he added.

Demographics and Policy Support

Highlighting India’s demographic advantage, Dhillon pointed out that 65% of the population is under 35, which will drive future economic growth. Positive government initiatives such as Make in India, startup support, and manufacturing incentives further strengthen this outlook.

Auto Sector Outlook and Audi India’s Strategy

Regarding Audi’s recent 2% price hike in India, Dhillon cited currency fluctuations as a key factor influencing cost adjustments. He noted that the Indian auto industry is expected to continue growing, supported by infrastructure development, simplified policies, and measures like GST reduction.

Dhillon also confirmed that Audi India will focus on customer-centric product launches in the coming months, including the recently introduced Audi SQ8 at an introductory ex-showroom price of Rs 1.78 crore.