Defending the
trade deal between India and the United States, Commerce and Industry Minister
Piyush Goyal said that New Delhi “aggressively” sought to push the farm sector’s interests, while protecting its sensitivities around dairy and agriculture. In an interview with The Times of India, Goyal gave insight into what went down during the negotiation of the deal, which was finalised earlier this month.
“We have $30-odd billion of imports. The important thing is that we have $55 billion of exports of farm and fish products. So, we should have an offensive interest, which is what we have focused on simultaneously, along with protecting the sensitive sectors,” the union minister told the Indian news outlet.
It is pertinent to note that the deal between India and the United States opens the doors for several products like tea, coffee, spices and fruits, with the US allowing their import at
zero reciprocal tariff. At the same time, America is also helping seafood exporters compete favourably as the reciprocal tariff has been slashed to 18 per cent.
Goyal maintained that the concern over the import of distillers dried grains with solubles, a feed ingredient that is a by-product of dry-milled ethanol production, is misplaced and that India has only opened a small window.
‘Interests and sensitivities of the farmers protected’
The commerce and industry minister insisted that the agreement would help Indian exporters grow and boost two-way trade. When asked if he is satisfied with the trade deal, Goyal gave an affirmative response. “This was long under negotiation, though not very long by FTA standards. It is very satisfying that the world’s largest democracies are coming closer together, further strengthening the most powerful relationship in the world,” Goyal told TOI.
“To be able to grab that opportunity, we need to have better markets, open new vistas, attract investments, and attract technologies to India. Completing EU and US trade deals in a span of eight days is quite satisfying, in a way reflective of India’s emergence as a confident nation,” he furthered.
When asked about the
nationwide farmers’ protest, which is scheduled to take place on February 12, Goyal maintained that the interests of farmers are protected in the trade deal. “Farmer bodies also understand that we have kept the sensitivities in agriculture fully protected and excluded areas of high production in India, where we are generally self-sufficient: meat, poultry, rice, wheat, sugar, all dairy items, all GM products, soybean and corn,” Goyal explained.
“There’s hardly any item that any farmer can feel threatened. We have seen the import statistics. Right from Congress times, we have been importing soybean oil and tree nuts. We have heard this complaint that we have closed our doors to wines and spirits for no reason. Several fresh and processed fruits continue to be imported. They are not available in India in sufficient measure.”
“India imports 5.5 lakh tonnes of apples, and there are certain items which India needs. We have $30-odd billion of imports. The important thing is that we have $55 billion of exports of farm and fish products. So, we should have an offensive interest, which is what we have focused on simultaneously along with protecting the sensitive sectors,” he added. Goyal insisted that India continues to hold the best comparative advantage.
‘No problem in purchasing goods worth $500 bn from US in 5 years’: Goyal
In a separate interview with the Press Trust of India (PTI), Goyal said that India will have no problem in purchasing goods worth USD 500 billion from the US over the next five years, terming it a very conservative number. Currently, India could source imports worth $300 billion from the US that it currently buys from other nations.
“We are even today importing 300 billion dollars of goods that can be imported from the US. We are importing from all over the world. That is going to grow up to two trillion in the next five years…I told my counterparts Look, I can assure you that there is demand in India, but you have to be competitive,” Goyal told PTI.
According to a joint statement following the finalisation of the trade deal, India has expressed its intention to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years. The commerce minister revealed that big tech firms have announced large investments in India and, therefore, “I sense that we will see 10 gigawatts of data centres” in the country, and for that India will need equipment, which the US can supply.
When asked if this $500 billion purchase target also includes orders that India has already placed, Goyal said: “Everything that we are talking about is in continuation and includes what we already are purchasing”. Even today, he said, India is importing between USD 45-50 billion from the US, and these are products which India does not produce.
“We are going to need aircraft. We are going to need engines for aircraft. We are going to need spare parts. We already have USD 50 billion worth of orders on
Boeing alone for aircraft. We have orders for engines,” he added.
With inputs from the PTI.
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