Autobayng News Team
Union Commerce and Industry Minister Piyush Goyal speaking at the ACMA Annual Conclave 2025.“>
The recent reduction of GST on auto parts from 28 per cent to 18 per cent is the biggest indirect tax reform since Independence, Union Commerce and Industry Minister Piyush Goyal said at the ACMA Annual Conclave 2025.
“Reducing GST from 28 per cent to 18 per cent is a parting gift to the industry. This is the biggest reform since Independence in indirect taxation,” Goyal said. The reform, to take effect from September 22, the first day of Navratri, addresses a long-standing industry demand and is expected to spur consumption in the domestic market.
According to the minister, the move will help formalise the spare parts sector economy, improve safety standards, and drive demand. He further urged the industry to pass on the full benefits of the tax cut to consumers.
India–EU partnership
Goyal also highlighted ongoing Free Trade Agreement (FTA) talks with the European Union, led by Maroš Šefčovič, Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency. He said the India–EU partnership would be crucial for the automotive sector, describing it as a “robust, fair and mutually beneficial” relationship.“As India and Europe grow into $30 trillion economies, the FTA we are negotiating will define our partnership for decades to come,” Goyal said, adding that both sides see automotive as a key sector of collaboration.
Goyal further added that India has emerged as a trusted partner for global businesses seeking scale, innovation, and reliability. “Companies who want to scale and innovate can see it (India) as a manufacturing and innovation hub,” he noted. He also emphasised the role of innovation, R&D, and international partnerships in strengthening India’s competitiveness and reducing imports.
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