India to emerge as major exporter to China, ASEAN, get edge in US trade pact, says Piyush Goyal

Commerce and industry minister Piyush Goyal revealed on Monday that India will become a major exporter of goods and services to China and the ASEAN region in the years ahead. He expressed openness to promoting free and fair trade with every country. India would gain a comparative advantage over other nations in the US trade pact, Goyal stated.

The minister also mentioned that negotiations for an Investment Protection Agreement with the European Union are ongoing, with legal changes required for an agreement on geographical indications. Amendments to these laws are planned in Parliament.

Goyal discussed India's future trade ties with China, noting that China provides India with important intermediate goods and raw materials. In cases where fair play or pricing is not proper, there is an established judicial process for resolution. India welcomes suppliers to meet its growing needs. He also said that negotiations for a similar agreement with China could occur at some point in the future.

The minister stated that India is working to rebuild its relations with China but emphasized that the final outcome of this journey has not yet been determined. China remains India's second-largest trading partner, with bilateral trade rising 7.9% year-on-year to $127.7 billion in 2025-26. However, India's trade deficit widened to $99.19 billion from $85 billion in the previous year.

Regarding China's new export controls on key machinery, including tunnel boring machines, Goyal said India would work on finding a solution. He also addressed exporters' concerns about vessels skipping Indian ports to go to Chinese ports, assuring shipping companies that there would be no reduction in shipping services to India. Goyal highlighted the rapid growth of India's exports.