Union Minister of Commerce and Industry, Shri Piyush Goyal, has declared that a Bilateral Trade Agreement (BTA) between India and the United States is contingent upon securing tariff rates that provide Indian exporters a distinct advantage over regional competitors. The announcement was made during the National Workshop on "Leveraging FTAs an Outreach Programme" in New Delhi.
Goyal emphasized the need for a nationwide initiative to maximize the benefits of Free Trade Agreements (FTAs) across all 780 districts. This outreach aims to empower every MSME, startup, and woman entrepreneur to expand India's global trade footprint.
India's Growing Export Prowess
Highlighting significant economic momentum, Goyal noted that India's exports reached approximately $317 billion between April and July, marking an increase of $36-37 billion compared to the same period last year. This surge coincides with a robust first-quarter GDP growth of 7.8% at constant prices, figures the Minister stressed are independently determined by the Ministry of Statistics.
India currently boasts nine active FTAs, collectively spanning economies with a combined GDP of roughly $60 trillion. These agreements offer preferential market access to nearly two-thirds of global trade. With additional agreements under negotiation or review – including with Canada, Mexico, Chile, Mercosur, SACU, GCC, and Israel – India aims to secure access to 75% of global trade at more favorable rates than its rivals.
Strategic Advantage in Global Markets
The Minister reflected on past trade challenges, particularly in sectors like textiles where India struggled against nations like Bangladesh and Vietnam due to their Least Developed Country (LDC) status or existing bilateral FTAs. However, Goyal asserted that India has now secured better tariff rates across major developed markets, stating, "The ball is now entirely in our court." He underscored that future success will depend on scale, quality, timely delivery, and fostering customer trust.
Operational timelines for several pacts were also outlined. The India-UK FTA went live on July 15, joining existing agreements with Mauritius, Oman, the UAE, and Australia. Pacts with the EFTA bloc, New Zealand, and the 27-nation European Union are slated to follow.
Government Support and Ambitious Targets
To bolster exporters, the government is implementing concrete measures, including priority allocations and "plug-and-play" facilities in 100 upcoming BHAVYA parks. Additionally, export credit and compliance support will be provided through the Export Promotion Mission.
Despite recent global shocks, Goyal affirmed the nation's ambitious long-term vision. He urged stakeholders to maintain a sharp focus on achieving the $1 trillion export target for the current year, the ultimate goal of reaching $2 trillion by 2030, and laying the groundwork for a $30 trillion economy by 2047.