He further stated that Europe does not provide “irregular subsidies” and “believe in free trade but fair trade”.
Union Minister of Commerce & Industry and North Mumbai Lok Sabha MP Piyush Goyal has stated that the recently concluded Free Trade Agreement (FTA) between India and the European Union places “India at the high table of international geopolitics”.
The minister made the remarks during an interview with news agency ANI.
The Union Minister claimed, “Under Prime Minister Narendra Modi's leadership, India has today found recognition and importance across the world.”
He added that the world sees India as the “fastest growing large economy, a country with strong microeconomic fundamentals, growing rapidly in terms of demand that 140 crore people generate, aspirational young India with full of talents and skills, is today wanted as a trading partner, as a strategic ally by all developed nations across the world.”
Goyal further said, “India used to fight shy of such agreements in the past. We used to be very defensive, worried and unwilling to take on big challenges.”
He added India is poised to become a developed nation by 2047, and that this is not possible unless India expands its international business and engagements.
The recent FTA has been signed with 27 European countries. He said all of them are developed nations and there is no competition between India and them.
“We compliment each other. They have different skill sets and products and we have different skill sets and products. And together we become a force multiplier.”
He further stated that Europe does not provide “irregular subsidies” and “believe in free trade but fair trade”.
Comparing Bangladeshi and Vietnamese exports with India’s, he said, “We used to always hear the story of why Bangladesh or Vietnam exports so much more than we do. It was always because Bangladesh, being a less developed country, had zero duty. Vietnam had an FTA, so it had zero duty in Europe. We used to pay duty up to 12%. Now that will become zero from day one.
All textile products, as soon as the FTA becomes effective, will be zero duty. Now we can compete on an equal footing, and I see no reason why we should not be aspiring to do 30, 40, 50 billion of textile exports, which will create lakhs of jobs at any cost."
He also added that the India–EU FTA will give a huge boost to ‘Make in India’.
“It will essentially open up a massive market for 'Make in India' – a market of 27 countries, which is five times larger than India's own market,” Goyal said.
He clarified that the India–EU FTA does not currently include any chapters on investment.
“We will discuss a potential investment agreement later, which will bring significant investment into India,” he added.
Speaking about the impact of the India–EU FTA on India’s automobile industry, Goyal noted that the Indian auto industry is doing “exceptionally well” today.
“We haven't opened up the market for cars that sell for up to 25-30 lakh rupees. We have protected the auto industry completely,” he added.
He further said that the agricultural sector and the animal husbandry sector are also completely protected under the agreement.
"There is absolutely no problem for the farmers. On the contrary, new markets open up for them. For example, our rice, wheat, soy, maize, corn, dairy products, cereals, pulses, and all such commodities produced in India have been excluded from this agreement,” he stated.
India and the European Union (EU) concluded negotiations for the Free Trade Agreement (FTA) on 27 January, a day after Republic Day.
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