India to Strengthen Trade Relations with Countries Offering Fair FTAs: Piyush Goyal
- MGMMTeam
- 7 days ago
- 3 min read
India will strengthen its trade relations with countries that offer fair, balanced, and equitable free trade agreements (FTAs), said Commerce Minister Piyush Goyal on Wednesday. He emphasized that India's benefits should align with its commitment to providing access to its rapidly growing consumer market of 1.4 billion people.
He added that India is currently negotiating FTAs with various countries and regions, including the European Union (EU) and Oman.
These comments are particularly noteworthy as India is also in talks with the US for a bilateral trade agreement, aiming to finalize the first phase of the deal by this fall (September-October).
"So we will be expanding our trading relations with countries where we get a fair deal, where we can have equitable and balanced free trade agreements, where India's gains commensurate with what we are offering, a large market of 1.4 billion people, growing market, the world's fastest growing economy," he mentioned this at the India-Middle East-Europe Economic Corridor (IMEC) Conclave 2025.
He stated that this corridor would facilitate trade, ensure smooth movement of goods and people, and reduce logistics costs.
Promoted as a groundbreaking initiative, the IMEC aims to establish extensive road, rail, and shipping networks linking India, Saudi Arabia, the US, and Europe, fostering integration between Asia, the Middle East, and the West.
The IMEC was launched during the G20 Summit in September last year in Delhi. An agreement was signed by India, Saudi Arabia, the European Union, the UAE, the US, and several other G20 partners to create the corridor.
Goyal mentioned that it could also open up new opportunities for the financial sector.
"We could have multilateral financing agencies along this corridor to help promote both the setting up of the corridor and at some stage...we should explore innovative financing models and see how this could finally be financed. For example, we have had green bonds in the past...long-term, 50-year, 100-year bonds to finance this kind of infrastructure," he said.
He mentioned that the countries could consider harmonizing regulatory practices and improving alignment on processes, procedures, trade practices, customs unions, and paperwork within these nations.
"For example, the UAE and we are already engaged to bring some alignment in our regulatory practices. If this region has to really be successful, we can't have border checkpoints at every level, so we'll have to look at regulatory connectivity also. So procedures, processes, regulation, all will have to be aligned to make this corridor a bigger success," Goyal said.
He stressed the necessity of a railway system as well.
"So we'll have to have more interoperable systems going forward. If you have highways, then we need some interoperable charging infrastructure across highways if we are promoting electrical mobility. So we'll have to think through all of these possibilities and bring nations together," he mentioned that implementing these measures would ultimately contribute to scaling.
The member countries will need to consider the various aspects that this project presents.
"For example, like UPI, you could have common payment systems, enabling money flow to be easier, and could be settled periodically, monthly or quarterly, in the reserve currency of the globe, or in dollars. But on a day to day basis, every transaction will not need to go through several iterations, only making the banks richer and adding to the cost of transport or cost of trade," the minister said.
He stated that India and the UAE have been engaged in discussions for a virtual trade corridor.
"Can we extend that through the IMEC corridor?" he wondered.
He mentioned that India is in discussions with Singapore to explore the potential of establishing an undersea cable for the transmission of clean energy.
"I've had a conversation with Australia...Singapore is also talking to Australia to see if the Singapore, Australia leg could be connected. We are in dialogue with Saudi Arabia and UAE to see if this leg could be connected," he said.
He further emphasized that this project should be viewed through the lens of a public-private partnership, as it will enhance its financial viability, and it should not solely be driven by the government.
"I do believe that initiatives will not only reduce the time to transport goods significantly...estimated to be about 40 per cent...bring down transport time, bring down cost of logistics, and therefore make trade seamless across continents, faster, more efficient," he said adding "I think this can become a new global access of the 21st century".
He mentioned that the positive aspect of the project is that it respects sovereignty and doesn't aim to impose a single idea on everything.
"It's not trying to create an economic union. It's not trying to dominate any of the region, something which the Belt and Road Initiative is now being recognized as becoming a political tool to try and dominate certain regions and their economic future," he added.
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