India open to fair trade agreements with developed countries

Commerce and Industry Minister Piyush Goyal stated on Monday that India has substantial flexibility to pursue bilateral trade with developed nations that uphold fair trade principles, but highlighted the need to employ tariffs to protect against unfair practices.

Amid rising global economic tensions and increasing protectionism among major economies, India’s Commerce and Industry Minister Piyush Goyal announced that India remains open to bilateral trade agreements, particularly with developed nations. 

During an industry event CIM Mr. Goyal stated, “The Indian industry is very competitive. They can beat any competition in the world if everyone sticks to the rules of the game. It’s the irregularities and unfair trade practices where we need protection through tariffs. So I have absolutely no hesitation in saying that, bilaterally, we have a lot of elbow room when working with developed countries—where India has equal opportunities.” 

Mr. Goyal emphasized that India has “a lot of elbow room” in negotiating with Western countries, suggesting potential growth opportunities despite global uncertainty. His statement comes at a time when a possible India-US trade conflict looms, potentially causing trade diversion that could benefit India and other emerging economies. The legacy of former US President Donald Trump’s tariff policies is expected to further expedite India’s trade talks with key partners such as the UK and the European Union.

 He added that India is well positioned to transform the current global scenario into an opportunity—just as it did during the COVID-19 pandemic and in the late 1990s, when the Indian IT industry leveraged the Y2K bug crisis to establish a strong global presence. He urged Indian industry to embrace nationalism, citing Mahatma Gandhi’s 1931 address to FICCI, and praised Prime Minister Narendra Modi’s vision of Viksit Bharat, focused on inclusive growth and uplifting the underserved.

While China has reacted to US tariffs with retaliation, destabilizing global markets, the European Union has maintained a more cooperative stance. European Commission President Ursula von der Leyen reiterated the EU’s openness to dialogue and highlighted a proposed zero-for-zero tariff deal on industrial goods with the US—framing it as strategic collaboration, not a concession.