India Eyes Wider Global Trade Access, Piyush Goyal Says New FTAs Could Cover 75% Of World Trade

India's Commerce and Industry Minister Piyush Goyal announced on Tuesday that the country is negotiating free trade agreements (FTAs) with at least eight or nine nations and regional groups, encompassing a GDP of approximately $15 trillion. These proposed agreements aim to broaden preferential market access for Indian enterprises and enhance India's position within global supply chains.

During a meeting with business representatives from India and Japan, Goyal highlighted that India has signed nine FTAs during the past four years, covering 38 developed countries with a combined GDP of nearly $60 trillion. Prior agreements with Japan, South Korea, and the Association of Southeast Asian Nations (ASEAN) have granted access to economies worth another $10 trillion. Collectively, India presently enjoys preferential market access to economies with a GDP totaling around $70 trillion.

Negotiations with additional countries and trading blocs could potentially augment this figure by another $15 trillion, Goyal suggested. The extensive network of FTAs could enable Indian businesses to enter more international markets, positioning India as a dependable partner in global value chains. Furthermore, these agreements could entice firms seeking to diversify their manufacturing and supply networks across various nations.

Speaking at the same event, Goyal also presented investment prospects in India, focusing on data centers, manufacturing, and artificial intelligence. He emphasized India's expansive domestic consumer market, burgeoning digital economy, and manufacturing aspirations as attractive prospects for Japanese businesses.

Goyal emphasized the necessity of balanced trade between India and Japan. He asserted that heightened investment and business involvement would foster a more equitable bilateral trade relationship. This visit aims to establish new business partnerships, stimulate Japanese investments in India, and broaden cooperation in technology-driven sectors. Additionally, it intends to facilitate connections between businesses from both countries and identify potential areas for sustained collaboration.