India Enters New Global Trade Phase, FTAs to Boost Exports: Piyush Goyal

Speaking in the Lok Sabha, the minister also said India is entering a new phase in international trade, which will help expand its global footprint and bring long-term economic benefits.

"While services exports continue to grow consistently every month, merchandise exports have remained flat till February, which means they have not declined," he said.

In March, there was some weakness in the first week, but exports turned positive in the second week and are expected to stabilise by the end of the month, he added.

Highlighting the broader external sector, Goyal said the current account deficit comprises several components, including the goods trade deficit and the services trade surplus. He noted that the services surplus remains significant and helps offset the merchandise trade gap.

He also pointed out that India receives large remittance inflows and continues to attract strong foreign direct investment (FDI), with the country setting new records year after year.

"Overall, India's economic situation and fundamentals are very strong. There is growing enthusiasm across the world to expand trade relations with India," the minister said.

Goyal added that in the past few years, India has expanded trade engagement with several developed nations, creating new opportunities for exporters.

He also stressed that earlier free trade agreements (FTAs) were often signed with competing economies, which posed challenges for domestic industries.

He said the government is now pursuing balanced trade agreements that will benefit Indian exporters, farmers, fishermen, and micro, small and medium enterprises (MSMEs).

Referring to the proposed trade pact with the United Kingdom, Goyal said efforts are on to operationalise it soon, possibly as early as next month.

"As these agreements become operational, they will open new markets for Indian products and services, creating vast opportunities for exporters," he said.

- IANS