ET WLF: National interest primary; US ties 'consequential', says Piyush Goyal
New Delhi: India's relationship with the US is "very consequential" but national interest solely drives trade deals, commerce and industry minister Piyush Goyal said on Friday. At the ET World Leaders Forum, he said India doesn't hyphenate trade and geopolitics, which stand on their own. Goyal said the government wants to decriminalise more sections under the Jan Vishwas programme. He underlined that Press Note 3 was context-specific and "when times change, decisions can be made to suit the time." India Inc ‘Super-confident’“Geopolitical considerations or wanting to look good will never drive India's trade decisions… We are multilateral in every dimension, but when it comes to opening India's market and expanding trade, our stakeholders, their views and their best interests are paramount,” Goyal said. “What's good for the industry and the country, that's what drives us for a deal.”With US President Donald Trump stepping up his tariff threats against India, American trade negotiators have postponed their visit to the country for the next round of talks on the bilateral trade agreement (BTA) that was scheduled to start August 25. Trump has threatened to double the tariff on Indian goods to 50%.India Inc isn’t worried about this, Goyal said.
Businesses have told him they are working on several alternatives and are “super-confident that this year will be better than last year.”The government is also looking to address the issue. “India is looking at the entire situation very strategically, realistically and is not reacting to the situation,” he said.“Our ministry and different line ministries are already looking at complementarity of our strength areas with other economies, so that we can look at expanding trade with other countries,” the minister said. “Maybe buy some more from them what we need, sell some more what they need. So there are different ways in which we can ameliorate this current situation, until we are able to come to a settlement.”When asked about Press Note 3, which mandates government approval for FDI coming from countries that share a land border with India, Goyal said the move has to be seen in its context. “We decided on coming out with Press Note 3 as a strategic decision,” he said, referring to the post-Covid drop in valuations of Indian companies.Goyal said India engages regularly with the European Union over their proposed trade agreement and there are certain non-tariff barrier issues on both sides that are under consideration and discussion.“So we are working very actively, and I would think it's very much doable,” he said, adding that a trade pact with New Zealand will be completed in the next few months. India’s agreement with Oman should be concluded by next month, he said. “We are working with Eurasia, Central Asia and other countries. So there is a lot on the plate,” he said.The government is also looking at opportunities to expand trade partnerships in key sectors along with other ministries.On the pact with the Asean, the minister said, “We are certainly very concerned because domestic industry gives us quite a negative feedback about the Asean trade deal done during the Congress regime.”As part of increasing the ease of doing business, Goyal said the government plans to expand Jan Vishwas 2 in the next few days. “We have decriminalised 355 sections… want to take it up to 1,355,” he said.As part of the upcoming GST revamp, the government is looking at how many labour-intensive sectors, such as food processing and textiles, can be supported through the indirect tax framework to give domestic demand a boost.
Businesses have told him they are working on several alternatives and are “super-confident that this year will be better than last year.”The government is also looking to address the issue. “India is looking at the entire situation very strategically, realistically and is not reacting to the situation,” he said.“Our ministry and different line ministries are already looking at complementarity of our strength areas with other economies, so that we can look at expanding trade with other countries,” the minister said. “Maybe buy some more from them what we need, sell some more what they need. So there are different ways in which we can ameliorate this current situation, until we are able to come to a settlement.”When asked about Press Note 3, which mandates government approval for FDI coming from countries that share a land border with India, Goyal said the move has to be seen in its context. “We decided on coming out with Press Note 3 as a strategic decision,” he said, referring to the post-Covid drop in valuations of Indian companies.Goyal said India engages regularly with the European Union over their proposed trade agreement and there are certain non-tariff barrier issues on both sides that are under consideration and discussion.“So we are working very actively, and I would think it's very much doable,” he said, adding that a trade pact with New Zealand will be completed in the next few months. India’s agreement with Oman should be concluded by next month, he said. “We are working with Eurasia, Central Asia and other countries. So there is a lot on the plate,” he said.The government is also looking at opportunities to expand trade partnerships in key sectors along with other ministries.On the pact with the Asean, the minister said, “We are certainly very concerned because domestic industry gives us quite a negative feedback about the Asean trade deal done during the Congress regime.”As part of increasing the ease of doing business, Goyal said the government plans to expand Jan Vishwas 2 in the next few days. “We have decriminalised 355 sections… want to take it up to 1,355,” he said.As part of the upcoming GST revamp, the government is looking at how many labour-intensive sectors, such as food processing and textiles, can be supported through the indirect tax framework to give domestic demand a boost.
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