Tokyo, August 24: Indian Commerce and Industry Minister Piyush Goyal announced on Monday that India is negotiating free trade agreements (FTAs) with at least eight to nine countries and regional groups to strengthen its role in the global trade system. The combined GDP of these economies is approximately $15 trillion. Goyal stated that once these agreements are implemented, India’s FTA network could encompass around 75% of global trade.
Addressing industry representatives from India and Japan in Tokyo, Goyal highlighted that previously signed and recently concluded FTAs have already ensured access for Indian companies to economies with a combined GDP of $70 trillion. Successful negotiations currently underway are expected to broaden this access even further.
He remarked, “Through our free trade agreements, we will cover nearly 75% of global trade. This will position India as a key player in global value chains.”
Goyal noted that India has signed nine FTAs in the past four years, covering economies worth approximately $60 trillion and 38 developed nations. Additionally, existing trade agreements with Japan, South Korea, and ASEAN countries provide access to an extra $10 trillion in economies.
Currently, India’s trade agreements offer preferential market access to economies totaling around $70 trillion, with upcoming agreements set to expand this scope.
During a special dialogue with Nikkei Asia in Tokyo, Piyush Goyal mentioned that the Indian government will introduce new rules and regulatory changes tailored to the needs of the semiconductor and auto component manufacturing sectors within the next two months.
He indicated that several global semiconductor and auto component manufacturers are planning to establish production units in India and have raised various policy and regulatory issues with the government.
Goyal assured industry representatives that necessary amendments to regulations would be made within the next two months, along with the introduction of new provisions, to address their demands and facilitate the establishment of manufacturing in India without any difficulties.
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