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| Union Minister of Commerce and Industry Piyush Goyal(ANI Video Grab) |
In an exclusive interview with Hindustan Times, conducted three days after India and the European Union concluded negotiations for a landmark free trade agreement, Goyal expressed optimism about closing the deal with Washington.
"I don't think there are any sticky issues left to be resolved. We can now look at moving towards closure," the minister stated, though he refrained from announcing a specific timeline.
Strategic Shift in India's Trade Approach
Goyal outlined a fundamental transformation in India's trade negotiation strategy—moving from what he characterized as protectionist caution to confident engagement with developed economies.
"You cannot live in isolation," he emphasized, arguing that India's path to becoming a developed nation necessitates robust engagement with the developed world.
The minister revealed that India now negotiates from a position of strength, focusing on the country's projected $30 trillion economy by 2047 rather than its current $4 trillion size. "Earlier, we would be negotiating on the current economy, which is a wrong strategy. PM Narendra Modi has changed this," Goyal explained.
EU Deal: A Template for Success
Reflecting on the recently concluded EU agreement, Goyal described it as a transformative opportunity that India should have pursued decades earlier. He estimated that the 20-year delay in securing such a deal cost India millions of jobs and billions in foreign exchange earnings.
The minister defended India's pragmatic approach to sensitive sectors, citing the wine industry as an example of past overprotectiveness. "There are only 6,000 grape farmers who make wine grapes. The total production is hardly ₹1,000 crore," he noted, suggesting India had protected minimal interests while forfeiting substantial gains.
On automobiles, Goyal expressed confidence that domestic manufacturers remain insulated, pointing out that European automakers cannot produce vehicles below €15,000—well below India's primary market segment of cars priced around ₹20 lakh.
Labour-Intensive Sectors to Benefit
The EU agreement is expected to significantly boost India's manufacturing capacity, particularly in labour-intensive industries. According to Goyal, $33.5 billion out of $35 billion in labour-intensive exports will receive zero-duty access from day one.
The textile sector stands to gain substantially. While Bangladesh currently exports $30 billion to the EU compared to India's $7 billion, Goyal projected Indian textile exports could reach $40-50 billion, leveraging the elimination of tariffs that previously put Indian exporters at a disadvantage against least developed countries.
Positive US Trade Momentum Despite Tariffs
Despite tariffs imposed by the United States last August, India's overall exports have maintained positive growth—a development Goyal attributed to exporters expanding into new markets and products.
"There is a greater consciousness that people have to move out of their comfort zone and look for new markets and products," he said, noting the emergence of new exporters and service sector evolution into cutting-edge technologies.
Looking Ahead
Beyond trade agreements, Goyal outlined priorities including promoting manufacturing and services, fostering innovation and R&D, supporting startups across technology sectors, and improving logistics infrastructure.
The minister emphasized that export-driven growth remains vital to India's development trajectory. "No country in the world has become a developed country without international engagement," he concluded.
With the EU deal awaiting ratification in 2026 and the US agreement approaching completion, India appears positioned to significantly expand its integration with major developed economies—a strategic shift that officials believe will accelerate the country's path toward developed nation status.
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