New Delhi, Jan. 28 -- The India-European Union Free Trade Agreement (FTA) is expected to have its most visible impact on the premium automobile segment, while also opening new growth pathways for sectors such as alcoholic beverages and auto components, according to industry experts.

In the automotive sector, the agreement is poised to redefine the top end of the passenger vehicle market. With proposed reductions in import duties on select European cars, global manufacturers are likely to reassess pricing strategies and product launches in India, particularly in the luxury and high-technology segments.

Poonam Upadhyay, Director at Crisil Ratings, explained that the impact would be concentrated at the premium level rather than across over...