India eyes trade links with 80 per cent of world

Chicago: India is building a network of free trade relationships that could eventually cover nearly 75 to 80 per cent of the world’s economies, Commerce and Industry Minister Piyush Goyal has said, as he pitched the country as a growing base for global trade and investment.

Addressing an event organised by the US Indian Community Foundation in Chicago, Goyal said India had sharply expanded the scale of its trade negotiations in recent years, and several more negotiations were underway.

He told Indian-American business leaders that the expanding network would give companies operating from India access to a much larger international market.

Goyal said that before 2014, India had free trade agreements with economies representing about $10 trillion in gross domestic product.

“In the last 4-4.5 years, we have decided to make free trade agreements with 31 developed and developing countries,” Goyal said.

He said the economies covered by the more recent agreements represented about $60 trillion in GDP.

“Some have been. Some will be in the next 6-8 months. In a way, you’re talking about 70 trillion dollars,” Goyal said. He contrasted the earlier $10 trillion figure with another $60 trillion associated with the newer trade relationships.

Goyal said another six to eight negotiations were underway with economies representing about $15 trillion.

“So, India will become the centre of an international web of global trading relationships. Covering nearly 75-80 per cent of the world’s economies,” he said.

The minister presented the widening trade network as part of India’s effort to integrate more deeply into international supply chains and expand opportunities for businesses producing goods and services in the country.

He also linked the trade push to India’s longer-term economic ambitions.

“The opportunity that a 4 trillion dollar economy today, which is working towards becoming a 30 trillion dollar economy by 2047, provides to you for your businesses, for your children and for the shared prosperity of the United States of America and India,” Goyal said.

He urged Indian-American entrepreneurs to participate in that expansion.

“This big opportunity, you don’t have to leave it. I invite you to join it,” Goyal said.

Goyal said government institutions, including Invest India, could assist businesses through their investment journey and help promote trade, investment, tourism and technology transfers.

The Commerce Minister described India as a trusted international partner and said its large domestic market offered another reason for American and Indian-American companies to consider investing there.

“The United States of America has capital strength, technology strength. India has ambition,” he said, while pointing to India’s young population and its aspirations for economic growth.

Goyal was speaking in Chicago after representing India at the G20 Trade Ministers’ Meeting in Milwaukee. During the visit, he also met American companies and investors and held several one-on-one meetings with large investors.

India has been pursuing a series of trade negotiations as it seeks greater access for its goods and services and deeper integration into global value chains. Such agreements typically seek to lower or eliminate tariffs on specified goods while setting rules governing services, investment and other areas of economic activity.

Additionally, Goyal has urged American and Indian-American investors to participate in India’s economic expansion, saying the country is working towards growing from a $4 trillion economy today to a $30 trillion economy by 2047.

Goyal said India’s large domestic market, expanding global trade relationships, and young population offered significant opportunities for businesses.

“The opportunity that a $4 trillion economy today, which is working towards becoming a $30 trillion economy by 2047, provides to you for your businesses, for your children and for the shared prosperity of the United States of America and India,” Goyal said.

“This big opportunity, you don’t have to leave it. I invite you to join it,” he said.

Goyal told the gathering that India was moving rapidly towards its goal of becoming Viksit Bharat by 2047, when it marks 100 years of independence.

He said India’s 1.4 billion people had made a collective decision that they wanted a developed country and a better quality of life.

“India is moving ahead fast and fast,” Goyal said, describing it as the fastest-growing economy and pointing to opportunities for investors and technology companies.

The minister said India’s economic proposition extended beyond its domestic market because of its expanding trade relationships with other economies.

He said several trade agreements had been concluded in recent years, while another six to eight negotiations were underway.

“India has the strength of a young country. India has the enthusiasm… We are a young nation of aspirational boys and girls,” Goyal said.

“Our average age is 30 years!” he added.

Goyal also pointed to changes underway in manufacturing, infrastructure, digital connectivity and defence production.

He cited the expansion of India’s commercial airports, growth in defence exports, spread of 5G connectivity and the development of the startup ecosystem as signs of the country’s economic transformation.

“Today India is the growth engine of the world,” Goyal said.

The Commerce Minister said government institutions would assist businesses interested in entering the Indian market.

He pointed to Invest India and trade promotion mechanisms that could support investment, trade, tourism and technology transfers.

IANS