The Society of Indian Automobile Manufacturers (SIAM), which represents the interest of the Indian auto industry, has urged the central government to exclude the industry from the proposed Free Trade Agreement (FTA) with the European Union.

SIAM has said that the country is not likely to gain anything from the FTA with the European Union.

A SIAM official said that the industry body has written to the country's Prime Minister Manmohan Singh to protest the auto industry's inclusion in the FTA negotiations with the EU authorities.

SIAM said in a statement that it understands that the government of India is aiming to reverse its policy of high tariffs to force investment, local manufacturing, local value addition and local employment by aiming to reduce tariffs under the Completely Built Units (CBUs) under the India-EU FTA.

SIAM said it "is not convinced that India is going to gain anything substantial out of this FTA". The body indicated that the agreement is being forced upon India without a proper sector wise cost analysis by the government.

SIAM cited other trade agreements such as that with Japan to state that FTA's have not benefited the country substantially.