FTAs to open up $85 trillion GDP markets for India: Piyush Goyal
New Delhi: Commerce and Industry Minister Piyush Goyal said on Monday that the new free trade agreements that India has signed will give the country preferential access to the markets of developed countries with a combined GDP of $85 trillion within the next year and a half or so.
Addressing the Dilli Dialogue: Policies for a Future-Ready India conference here, the minister said, “We want to be part of the global marketplace, creating opportunities for people, jobs, startups, and our youth to come up with new ideas. In this process, we’ll have a twin track. Of course, we’ll have to engage with the world’s best technologies, but we’ll also have to identify areas with tremendous job and business growth potential.”
Citing the example of tourism as an area of growth, he said, “Just imagine the scope of tourism. It is AI-proof. AI can only improve the efficiency of tourism promotion.”
Outlining India’s strategy for negotiating free trade agreements (FTAs), the minister said, “My pitch is very simple in trade deal negotiations. I am a $4 trillion economy today and our purchasing power is already, as per the IMF, $16 trillion. Our capacity as a nation is huge.”
He said India’s population of 1.4 billion, its demographic advantage and its growth trajectory set it apart from many advanced economies, which are grappling with ageing populations and slower growth.
Goyal said India’s trade strategy involves identifying vulnerable sectors before negotiations begin and carefully assessing the potential impact of greater market access.
He said the government draws up a list of sensitive areas, particularly those involving farmers, fishermen and micro, small and medium enterprises (MSMEs), before deciding which sectors can be opened to foreign competition and which require protection.
Goyal highlighted that at the same time India carries out trade negotiations with the principle of mutual respect for each country’s economic sensitivities.
“Most negotiations I start with the ground rule: you respect my sensitivities, I will respect yours,” he said, adding that this approach helps make negotiations smoother.