India is open for biz; to expand global footprint, says Piyush Goyal

PM Modi's government looks at a trade deal very seriously, examining its potential for the next 50 years, says Goyal

Since February, India has inked two key trade pacts — with the United Arab Emirates and Australia — in line with its revamped foreign trade strategy. Piyush Goyal, Union minister for commerce and industry, tells Shreya Nandi in an interview that this indicates India’s openness to business, and that the country wants to expand its international footprint. He also said the government will soon find a solution to payments-related challenges being faced by exporters amid the Russia-Ukraine war. Edited excerpts:

It’s been over two years since India opted against joining the Regional Comprehensive Economic Partnership (RCEP), and now we have signed two trade deals back-to-back. Do you think these deals will get India an image makeover? What kind of message are we sending to the world?

This isn’t an image makeover. Trade deals are for the good of both countries. Trade engagement should bring prosperity to us. It should provide job opportunities and open up good outcomes. That is what a trade deal is about. It is never done to create an image.

Prime Minister Narendra Modi’s government looks at a trade deal very seriously, examining its potential for the next 50 years, because such a deal will outlast all of us and is done carefully with a great deal of study and caution. We have concluded an exciting agreement with Australia, full of potential and newer avenues of growth for both countries.

I’m quite excited about the message this will give to the world — India is open for business. India wants to expand its international footprint. 

We are looking at our goods and services playing an important role in world trade in the years to come, and we have the confidence that the trust the world has in India, in Indian businesses, and in the Indian government will help us grow.

No developed country has reached where it is today without an international engagement.

Talking about an enhanced economic partnership with Australia, you had mentioned that there is scope for a broader trade deal later. Is there any pending issue?

There are many areas for further development between us. For example, the digital world -- especially with India's growing strength in the IT sector -- is an area where we will like to engage much more with Australia. Then there is sustainability and environment, and our collective fight to protect the planet from adverse circumstances of climate change. There are many areas where we are going to look for further engagement, such as education and technology partnerships.

Why did we not see a chapter on government procurement in the India-Australia Economic Cooperation and Trade Agreement?

 There is no discussion on that at all, at this stage.

Now that we've signed trade deals with the UAE and Australia, what’s next we can expect?

We have already launched discussions with the UK and Canada. Ministers from both countries have visited India recently and we have launched formal negotiations for an interim arrangement, so that the low-hanging fruits can be brought to fruition. With the EU, we had launched discussions, but because of the Covid-19 situation, we have not yet started formal negotiations. The commerce secretary is going (to Brussels) next week to draw up the contours and timelines.

With Israel, we are having discussions. We have had discussions with the Gulf Cooperation Council (GCC) to finalise the terms of reference, so that we could look at a comprehensive arrangement with the entire group of six countries. The UAE is one of them. The other five (Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia) also would like to come together; we have had very good discussions with them.

 So, I think the world today recognises India's emergence as a very important stakeholder in the global economy; it’s the fastest-growing economy under the very decisive, strong, and meaningful leadership of Prime Minister Narendra Modi. Young boys and girls who make us proud with their achievements; we have the third-largest start-up ecosystem full of hope and enthusiasm. India has arrived and I think most of the world recognises that.

Now that the World Trade Organization’s (WTO’s) 12th ministerial conference (MC12) is two months away, do you think that there can be consensus on the TRIPS waiver issue that India has been pushing for?

It’s early to preempt the outcome. MC12 is in June. Ngozi Okonjo-Iweala, director-general of the WTO, is having a wide range of consultations. We are an important part of all those discussions, but the last word is yet to be heard on that.

Recently, we did see a kind of breakthrough (on the TRIPS waiver issue). Going ahead, how optimistic are you about consensus among all the member countries of the WTO?

I think it would be improper to preempt what would happen at the MC12 or the WTO general forum or the TRIPS committee, especially given the prevailing geopolitical situation. I think we should wait and watch, and let's hear from more countries.

We have already exceeded the $400-billion target for exports. Some exporters have been saying that post-Covid pent-up demand is the key factor in pushing this growth. Do you expect this momentum to continue?

Well, I have the courage of conviction. And I think, all the business people with whom I meet and interact, all the export promotion councils, and all the industry associations are very confident in their abilities to sustain this growth. All are very excited about the possibilities. All are finding huge traction when they engage with the rest of the world. People are looking at India as a trusted partner. People are looking at India as an emerging global superpower. The world has confidence in India. Our government has confidence in itself, and our businesses and industry persons.

Regarding the ongoing conflict between Russia and Ukraine, exporters have been saying that around $400-500 million in payments is stuck because of the ongoing conflict. What kind of intervention/support do we expect from your department?

The finance ministry seized of the matter and it is finding solutions in an orderly fashion within the framework of international rules. Of course, the figure that we had asked stakeholders to submit is not as large. It's much smaller.

Any kind of recommendation that the commerce and industry ministry has given to the finance ministry?

This is a matter that relates to the Ministry of Finance. We have no say in the matter but we are certainly hand-holding the industry. We are with them fully and the finance ministry is fully seized of the issue and solutions will be found.

When shall we see the implementation of the rupee-ruble mechanism?

I don't know what the solution is and when it will come. I am not privy to that.