India’s trade policy is finely tuned to align with its growth trajectory while remaining open to further expansion, emphasized Union Minister Piyush Goyal during the Business Standard Manthan event held in New Delhi. Speaking on Thursday, Goyal underscored the need to tailor trade policies to the evolving dynamics of India’s economic progress.

“We have to look at our growth trajectory and calibrate the trade policy as the country moves through this cycle of growth,” stated Goyal, who serves as the Minister of Textiles, Commerce and Industry, and Consumer Affairs, Food and Public Distribution. He emphasized the importance of recognizing that what may have worked for a developed economy like America in 2024 might not necessarily be applicable to India’s unique circumstances.

Engaging in a fireside chat with AK Bhattacharya, the editorial director at Business Standard, Goyal elaborated on the disparities in trade policies across different regions. While noting the persistence of high duties on various products in America and Europe, he reiterated India’s commitment to internationalizing its economy and fostering greater engagement with the global market to drive rapid growth in exports.

“We will be doing $2 trillion of exports by 2030. I have no doubt we will achieve it,” Goyal affirmed, expressing confidence in India’s export potential. He emphasized that India’s trade policy is carefully calibrated to reflect its developmental journey while remaining receptive to expansion opportunities.

Highlighting recent developments in trade agreements, Goyal shed light on the European Free Trade Association (EFTA) deal, which involves Iceland, Liechtenstein, Norway, and Switzerland. Under this agreement, these countries have committed an additional $100 billion investment to generate 1 million direct jobs in India over the next 15 years in exchange for market access.

Regarding India’s decision to withdraw from the Regional Comprehensive Economic Partnership (RCEP) in 2019, Goyal cited stakeholder concerns and the imperative to safeguard the Indian market from potential adverse effects, particularly from China. He asserted that this move was crucial in preserving India’s growth story, averting the influx of sub-standard goods that could have dampened investment sentiment and adversely impacted the domestic market.

“If India had not moved out of the RCEP, it would not have had the kind of growth story it has had in recent years,” Goyal remarked, emphasizing the importance of strategic decisions in shaping India’s economic trajectory.

Addressing concerns about declining foreign investment inflows into India, Goyal attributed this trend to the prevailing high interest rates globally. He highlighted the significant rise in interest rates over the past two years, which has led to an outward flow of capital from emerging economies. Despite this challenging global environment, Goyal noted that India has managed to sustain relatively stable foreign investment inflows compared to other emerging markets.

“While the interest rates in the developed world are soaring, we have seen a nominal decline in foreign investment inflows in India,” Goyal stated. He underscored the resilience of India’s investment climate despite external headwinds, contrasting it with the stark declines witnessed in some other emerging economies.

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In conclusion, Goyal reiterated India’s commitment to a dynamic and adaptive trade policy framework that is responsive to the country’s growth trajectory. He emphasized the need for strategic decision-making to capitalize on opportunities while safeguarding against potential risks, ensuring sustainable economic growth and prosperity for the nation.

#Piyush Goyal

#Piyush Goyal