India negotiating FTAs with several countries, including US, New Zealand, Oman, Peru, Chile: Goyal

Commerce and Industry Minister Piyush Goyal has said that India is negotiating free trade agreements (FTAs) with a number of countries, including the US, New Zealand, Oman, Peru, Chile, and the European Union. He said that Qatar and Bahrain, too, are keen to negotiate trade pacts with India. He stated that, in August, India and the Eurasian Economic Union (EAEU), comprising Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and Russia, signed Terms of Reference (ToR) to launch negotiations on an FTA.

Earlier, the minister led an official delegation to New York for trade talks. After that meeting, India and the US decided to continue negotiations for the early conclusion of a mutually beneficial bilateral trade agreement. Both sides held constructive meetings on various aspects of the trade deal. During the visit, the minister held meetings with United States Trade Representative (USTR) Jamieson Greer and US Ambassador-designate to India Sergio Gor.

These deliberations were important as they took place after the US imposed a 25% reciprocal tariff and an additional 25% penalty on Indian goods entering the American market for purchasing Russian crude oil. At present, a total of 50% additional import duty is imposed on Indian goods.

Many private rating and research institutions project severe impact of tariffs on India's GDP. Crisil Intelligence in its September report, has said that high tariffs imposed by the United States (US) on Indian goods pose a major risk to the country's growth. It added that the tariffs will impact both Indian goods exports and investments. However, it noted that domestic consumption, driven by benign inflation and rate cuts, is expected to support growth.