India is likely to take a ´flexible approach´ on tariffs on auto components in the free-trade agreement negotiations with the European Union. The 28-nation block is keen to restart talks on the comprehensive free trade agreement (FTA). Negotiations on the FTA, which began in 2007, came to halt after the April 2013 talks ran into a deadlock. India feels it is in a stronger negotiating position after the Parliament approved raising the foreign investment cap in the insurance sector to 49 per cent from 26 per cent, a key demand of the EU. On auto, India could agree on reducing duties on high-tech auto components as that will bring down import cost for Indian companies and customers, and not pose a threat to domestic industry.