WTO Not Very Effective Right Now, But Global Trade Works: Piyush Goyal

WTO as a forum is not very effective now; India engages globally from position of strength: Piyush Goyal

New Delhi, June 11

Addressing the closing session of the fifth Annual Meeting of the India Global Innovation Connect (IGIC), Goyal said, "Fortunately, the WTO as a forum is not very effective right now. So action has to be almost bilateral, oftentimes in cooperation. But with that, as it may, I think, all world trade, at the aggregate, is still very much in its place, still working under the WTO framework."

He further added that "India today works from a position of strength when it's engaged with other countries. We are able to navigate this in the spirit of friendship. You win some, you lose some. But at the end of the day, in the aggregate, I think it's a win-win for all countries working together."

The minister said this while responding to a question on rising protectionism across developed economies and whether such trends could hamper India's ambitions of expanding its role in global trade and supply chains.

Goyal acknowledged that countries are increasingly taking measures to protect domestic industries, citing efforts by the European Union, the United States and the United Kingdom to safeguard sectors such as steel from external competition. He said India, too, takes steps to protect its economy from unfair trading practices when required.

"There will obviously be some constraints, particularly now that the European Union, U.S. and U.K. are trying to safeguard their domestic steel industry, for example, against competition. Or even India, for that matter, protecting our economy from unfair trading practices of certain geographies," he said.

Despite these challenges, the minister said India engages with the world from a position of strength and is able to navigate differences through cooperation and dialogue.

"India today works from a position of strength when it's engaged with other countries. We are able to navigate this in the spirit of friendship. You win some, you lose some. But at the end of the day, in the aggregate, I think it's a win-win for all countries working together," Goyal said.

The minister said India has adopted a well-thought-out strategy of expanding engagement with developed economies through trade agreements and investment partnerships. He noted that India has signed nine free trade agreements in the last three to three-and-a-half years, covering 38 countries that are significantly wealthier than India on a per-capita income basis.

According to Goyal, many of these countries face ageing populations, rising production and research costs, and shortages of skilled talent, while India offers a young workforce, competitive costs, growing innovation capabilities and a large domestic market of 1.4 billion aspirational consumers.

He said such partnerships are critical to achieving India's goal of becoming a developed nation by 2047, when the country will mark 100 years of Independence. Goyal said the Indian economy could be in the "ballpark of about USD 30 trillion" by then, but added that such growth would require greater international engagement, higher quality standards, technological advancement and stronger participation in global trade.

Highlighting India's efforts to become a preferred investment destination, the minister said the government has focused on strengthening macroeconomic fundamentals, reducing regulatory burdens, simplifying taxation and improving ease of doing business. He also pointed to large-scale investments in infrastructure, including airports, ports, expressways and power systems.

Referring to the Trade and Economic Partnership Agreement (TEPA) signed with the European Free Trade Association (EFTA) countries -- Switzerland, Norway, Iceland and Liechtenstein -- Goyal said the grouping has committed to bringing USD 100 billion in investment into India over the next 15 years. He added that investment flows have already begun and discussions between businesses are progressing actively.

Goyal said India would continue pursuing mutually beneficial trade and investment partnerships despite evolving global challenges, arguing that deeper integration with the global economy would help create jobs, improve quality standards, attract capital, strengthen innovation and enhance India's role in international trade.

— ANI