India-EU trade deal could hit Nashik’s auto hub

MP Rajabhau Waje has expressed concerns over the proposed trade agreement between India and the European Union (EU), claiming it could adversely affect wine and automobile industries in India in general, and Nashik in particular.In a detailed letter and emails to Union finance minister Nirmala Sitharaman and external affairs minister S Jaishankar, and by raising the issue as a matter of urgency, under Rule 377, in Parliament on Monday, Waje asked govt what safeguards it used to protect and encourage goods under ‘Make In India’. He also underlined that there are serious risks of under-invoicing and dumping of goods.“While I welcome govt’s decision to conclude the India-EU Trade Agreement, I wish to place on record my serious concern regarding its adverse impact on Nashik, a significant hub of wine production and automobile manufacturing,” said Waje in Parliament and in the letter sent to the ministers. “The proposed lowering of tariffs will expose Nashik’s industries to intense import competition, leading to economic losses for local manufacturers, grape farmers, industrial workers, and allied MSMEs,” said the MP.“A fundamental question arises: if ‘Make In India’ is our national priority, then how will domestic manufacturing be protected when increased imports are encouraged primarily to accommodate Western markets?” he questioned.Waje requested govt to consider production-linked incentive schemes for the wine and automobile sectors, technological upgradation, subsidies to enable Indian firms to license intellectual property rights, tax relief, and power tariff subsidies to provide an advantage to the industries, among other measures.