G20 ministers discuss curbing impact of govt-backed excess manufacturing capacities: Piyush Goyal

G20 trade ministers have debated the potential negative impact of government-backed excess manufacturing capacities on fair trade practices, according to Commerce and Industry Minister Piyush Goyal. Speaking to the Indian diaspora in Chicago, Goyal emphasized the need to prevent large production capacities from harming countries that adhere to honest and fair trade, including the United States, Europe, and India.

The ministers also discussed the future of the World Trade Organisation (WTO), which is currently facing significant challenges, as many nations employ predatory pricing due to overcapacity and engage in dumping goods, negatively affecting fair trade.

Goyal highlighted India's appeal as a preferred destination for setting up data centers due to its low-cost infrastructure, abundant young talent, and tax-free benefits until 2047. The country has received nearly USD 200 billion in commitments for data center investments, making it the world's best location for housing these facilities.

India boasts 60% clean energy capacity, including solar, wind, hydro, and nuclear power, which is advantageous for data centers, as they operate more efficiently and cost-effectively on clean energy sources.

The minister noted that India's clean energy infrastructure allows for a lower cost of 11 or 12 cents per life cycle, significantly cheaper than in America or Europe. Additionally, India's STEM graduates, numbering 1.4 million, contribute to the nation's technological prowess. Goyal also mentioned ongoing free trade agreements and negotiations, which would grant Indian companies access to markets with a combined GDP of over USD 70 trillion.

In the coming year, India will host a large delegation of stakeholders to showcase its growth story and opportunities.