His statement comes as India awaits a response from the United States on the proposed bilateral trade deal, of which both sides had aimed to conclude the first tranche by the fall. Officials said a new round of negotiations was not necessary at this point. Negotiations continue as the United States imposes 50% tariffs on most Indian exports starting August 27, half of which constitutes a penalty for purchasing Russian energy.
India expects these tariffs to impact $48.2 billion of its merchandise exports based on 2024 trade values.
Three or four of the winners at the event told him they would like to see the US deal concluded quickly, the minister said. “I can assure you that we are working very actively with many developed countries around the world, the United States, the European Union made up of 27 countries, as well as with New Zealand, whose minister is arriving here this evening or tomorrow morning for almost final discussions.”
Negotiations on a trade agreement are also underway with Oman, Chile and Peru, he said. “Eurasia, Central Europe, Russia, that whole region is looking to work very closely with India; maybe with the GCC and Middle East countries as well.”
Goyal said it was “almost possible” that India’s plastics industry could reach $100 billion and achieve $25 billion in exports. “In each of these deals, we will get better access for your industry,” he said, adding, “It is important that we come out of this cozy comfort of the big Indian market and be more aggressive in our foray into foreign markets.”
Goyal said that with the finalization of trade deals with India, one after another, the industry will see markets opening up considerably. While the EFTA trade agreement comprising Switzerland, Norway, Liechtenstein and Iceland has already entered into force on October 1, the UK is actively working to speed up the approval process so that the trade agreement comes into force very soon, according to the minister.
Emphasizing on sustainability and quality, Goyal asked the industry to name and shame those who are manufacturing substandard products and flooding the market, or any importer bringing substandard products into the country. “These import lobbies are working overtime trying to bring predatory pricing, low prices, substandard raw materials and products into the country… Expose these importers, expose anyone in India who is manufacturing substandard products,” he said.
Separately, the Ministry of Commerce and Industry said India and the Eurasian Economic Commission, a group of five countries, have revised the roadmap for their proposed FTA on goods in a bid to strengthen economic ties. THE Eurasian Economic Union (EAEU) includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.
On August 20, India and the EAEU signed a mandate to begin formal negotiations on a draft free trade agreement.
Commerce Secretary Rajesh Agrawal visited Moscow last week for talks with Eurasian Economic Commission Trade Minister Andrei Slepnev and Russian Deputy Industry and Trade Minister Mikhail Yurine. They discussed ways to improve trade diversification, supply chain resilience and cooperation in essential minerals and reviewed the next steps of the India-EAEU FTA in goods. The terms of reference signed on August 20 this year outline an 18-month work plan aimed at diversifying markets for Indian businesses, including MSMEs, farmers and fishermen.
India and Russia also discussed ways to increase bilateral trade to $100 billion by 2030.
The dialogue also focused on practical measures related to logistics, payments and standards aimed at improving predictability and ease of doing business for companies in both countries.
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